Risk Index reflects 50% chance of Real Estate price decline

PMI Mortgage Insurance Co., one of the largest private mortgage insurers has released it's 2005 Risk Index indicating the direction of housing prices for the 50 largest housing markets in the United States over the next two years.

Topping the list of markets expected to show a decline in housing prices are Boston and San Jose, both of which have better than a 50 percent chance of seeing home price reversals in the next two years, followed by San Francisco (48 percent chance), Providence, R.I. (40 percent), metropolitan New York and Los Angeles (36 percent). Metropolitan Washington, which has had strong employment and income growth along with rapid home price escalation, is rated an "average" risk by PMI, with just a 15 percent chance of property-value declines during the coming 24 months.