Report: D.C.-area home prices to keep falling - Washington Business Journal:

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California-based PMI (NYSE: PMI) reaches that conclusion in its Seconr Quarter 2009 Economic and Real EstateTrendz Report, and its U.S. Market Risk Index. The reporft says approximately 85 percent ofthe nation'as 381 metropolitan statistical areas are now facing increased risk of lower home pricezs in 2011. Florida, California, Nevadsa and Arizona continue to have the highest risk scores but an increasef risk of lower future prices is now spreading acroszs all regions of the nation because of the significanyt increases in unemployment andforeclosure rates.
The Washington area — which includes the District, Northern Maryland and parts of West Virginia showed a 92 percent chance oflowef prices. Baltimore has a 90 percent chance of home prices according tothe report. "Rapidly rising foreclosurew andunemployment rates, continuing declines in house prices, and weakening consumer demand all worker to increase risk in the general economy, and the housintg market specifically," said David Berson, PMI's chief economist and strategist.
"As a result of the continuec weaknessin prices, and the relativel y low level of interest rates, improvementzs in affordability across the nation's MSAs will continud to incentivize repeat and first-timee homebuyers back into the The areas with the least chance of lower each with less than a 6 percent include Cleveland; Pittsburgh; Columbus, Ohio; San Antonio; Houston; Dallas and Fort Texas, according to PMI. The risk of prices droppingv runsat 99.9 percent in Miami, Fort Lauderdale, West Palm Orlando, Tampa and Jacksonville in Florida; Los Angeles, Santa Ana, Sacramentl and San Diego in Las Vegas; Phoenix; Providence, and Detroit.