The PMI Group, a California-based provider of mortgage insurance, recently published an interesting study that ranks the riskiest housing markets in the country ("riskiest" meaning which are the most at risk of a downturn in housing prices). Perhaps not surprisingly, the "Top 10" list of riskiest markets is dominated by California cities. But I was surprised by PMI's choice of the "riskiest" city, which PMI predicts has a better-than-50% chance of falling home prices, because it isn't a housing market that gets a lot of attention in the media. It's Boston, which PMI estimates has a 55% chance of seeing home prices fall. (Interestingly Cambridge is 7th, and the Providence RI-New Bedford-Fall River MSA is ranked 10th. I think PMI's estimation that Washington DC has just a 20% shot at falling prices is too low. There hasn't been much discussion of the Boston housing market on this forum. What do Bostonians think?
Before it's here, it's on the Bloomberg Terminal. LEARN MORE