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Region has a 99.9 percent chance that home prices will drop by 2011, says PMI.
Orange County is among the top 10 riskiest housing markets nationwide, according to PMI Insurance Co.'s U.S. Market Risk Index.
That's bad news for the Santa Ana-Anaheim-Irvine MSA, which had a risk index of 99.9 percent. The region will most likely have even lower housing prices in 2011 than it does right now. (The latest release from California Association of Realtors put O.C.'s median home price at $474,110.)
Orange County's market risk index rose from 99 percent in the fourth quarter of last year to 99.9 percent in the first quarter. Price declines rose from 8 percent in the fourth quarter to 21 percent in the first quarter, putting it at a volatility rate of nearly 27 percent. PMI defines price volatility as the standard deviation of quarterly two-year house prices. The higher the ranking, the riskier the MSA's real estate market is. And O.C.'s is among the highest.
<a href="http://www.ocmetro.com/t-Orange_County_among_10_riskiest_housing_markets_nationwide_7_8_09.aspx">link</a>
Orange County is among the top 10 riskiest housing markets nationwide, according to PMI Insurance Co.'s U.S. Market Risk Index.
That's bad news for the Santa Ana-Anaheim-Irvine MSA, which had a risk index of 99.9 percent. The region will most likely have even lower housing prices in 2011 than it does right now. (The latest release from California Association of Realtors put O.C.'s median home price at $474,110.)
Orange County's market risk index rose from 99 percent in the fourth quarter of last year to 99.9 percent in the first quarter. Price declines rose from 8 percent in the fourth quarter to 21 percent in the first quarter, putting it at a volatility rate of nearly 27 percent. PMI defines price volatility as the standard deviation of quarterly two-year house prices. The higher the ranking, the riskier the MSA's real estate market is. And O.C.'s is among the highest.
<a href="http://www.ocmetro.com/t-Orange_County_among_10_riskiest_housing_markets_nationwide_7_8_09.aspx">link</a>