PMI Sees Bottom in Home Prices

From RealTrends.com: A new study from PMI Mortgage Insurance Co. suggests home prices have found their bottom. The company’s analysis shows that by almost all measures, residential property values began stabilizing considerably during the second and third quarters of last year – and monthly data through November confirms that this stabilization continued into the fourth quarter. PMI says the likelihood that home prices will drop lower over the next 24 months is diminishing for most large metro markets.Of the 50 most-populated MSAs in the United States, 22 had declines in their risk index, while only 17 had increases in the third quarter. Among all 384 MSAs, risk scores in 212, or 55.2 percent decreased, compared with 136, or 35.4 percent, that had rising risk scores. Florida, California, Nevada, and Arizona MSAs continued to face the highest probability of continuing price drops. PMI said all metro areas studied in Florida, Nevada, and Arizona have risk scores that remain significantly elevated.

Source: DSNews.com, Carrie Bay, (02/05/2010)