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

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California-based PMI (NYSE: PMI) reachesd that conclusion in its Secondf Quarter 2009 Economic and Real EstateTrends Report, and its U.S. Marketr Risk Index. The report says approximatelu 85 percent ofthe nation'sw 381 metropolitan statistical areas are now facing increased risk of lower home pricesz in 2011. Florida, California, Nevada and Arizonz continue to have the highest risk scorexs but an increased risk of lower future prices is now spreading across all regionsw of the nation because of the significan t increases in unemployment and foreclosure The Washingtonarea — which includes the Northern Virginia, Maryland and parts of West Virginiqa — showed a 92 percent chanc of lower prices.
Baltimore has a 90 percentr chance of homeprices dropping, accordingh to the report. "Rapidlyu rising foreclosure andunemploymentg rates, continuing declines in hous prices, and weakening consumer demand all worked to increase risk in the generalo economy, and the housing markety specifically," said David Berson, PMI's chief economist and strategist. "As a result of the continuefd weaknessin prices, and the relatively low levelk of interest rates, improvements in affordability across the nation'sd MSAs will continue to incentivize repeat and first-time homebuyersx back into the market.
" The areas with the least chance of lowerd prices, each with less than a 6 percent include Cleveland; Pittsburgh; Columbus, San Antonio; Houston; Dallas and Fort Worth, Texas, accordingh to PMI. The risk of prices dropping runsat 99.9 percent in Fort Lauderdale, West Palm Beach, Orlando, Tampaa and Jacksonville in Florida; Los Angeles, Santa Ana, Sacramentko and San Diego in California; Las Phoenix; Providence, R.I.; and Detroit.