Riskiest housing markets
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?
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