04 Jul 08 More Good News for Dallas-Fort Worth Home Owners

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According to a recent report by PMI Group, detailed by Steve Brown of the Dallas Morning News, home prices are unlikely to see a decrease in value over the next two years. PMI – a mortgage insurance company – ranked Dallas-Fort Worth as the lowest risk for declining home prices, out of all fifty states.

PMI’s risk factor report shows a close correlation between the markets that have seen the highest increase in home prices in recent years with the highest level of probability that the same markets will see the greatest decrease in home prices in the following years.

“Given the magnitude of the inventory overhang, we expect national home price declines to continue into at least 2009,” said PMI chief economist David Berson.

Berson also suggested that although Dallas-Fort Worth home prices should be encouraging, it doesn’t mean the area won’t experience short-term declines in value.

Four out of five cities that ranked on PMI’s report as having the lowest levels of risk, associated with home price declines, are located in Texas. The five worst cities include Riverside, California; Fort Lauderdale, Florida; West Palm Beach, Florida; Orlando, Florida; and Las Vegas, Nevada.

Click on the link to read the PMI US Market Risk Index.

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25 Apr 08 Dallas-Fort Worth Home Prices Holding Strong

Good news for homeowners in the Dallas-Fort Worth area; home prices are predicted not to experience considerable price declines throughout the next couple of years. PMI Group, a mortgage insurance firm, has reported that thirteen of the nation’s top housing markets have a greater than 60 percent chance of experiencing a decline in home prices.

Various cities within Arizona, California, Nevada, and Florida have experienced the highest price increases in the past several years; however, most of these markets have seen significant declines over the past twelve months.

PMI’s David W. Berson—chief economist and strategist—stated, “excess supply is responsible for much of the risk we’re seeing in the market.”

This is a main reason for why North Texas is not expected to see home prices drop any time soon. There is a six-month supply of resale homes in North Texas and seven-month supply of new homes. The rest of the nation is looking at more than a nine-month supply of resale homes and just under a ten-month supply of new homes. The twenty-year industry average has been six-months for resales and five and a half months for new builds.

This information is reported by Steve Brown of The Dallas Morning News. To read the entire article click here.

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