Hot off the press…According to the senior director of market economics and risk analysis for Walnut Creek-based PMI Group Inc., a mortgage investor insurance firm, was commenting during an interview Monday about PMI’s recently-released report on home prices.
La Vaughn Henry projects that the Inland Empire will see a bottoming out sometime in 2010…could be as late as December.
….More words of encouragement from La Vaugh Henry…”renewed growth will be fairly tepid” in neighborhoods across California.
Here in the IE…things are tough and once again confirmed that San Bernardino-Ontario-Riverside region ranks No. 2 out of the 10 large metro areas most likely to experience depreciating real-estate values into December 2010, according to the report.
The report’s risk index is calculated using unemployment, mortgage market, interest rate, foreclosure rate and other data.
The Miami metropolitan area is No. 1, the Los Angeles region is No 4. and the Santa Ana-Anaheim-Irvine area is No. 8.
According to Henry, heavy declines are still coming to several California neighborhoods. When asked … “Does that mean another 10 percent, 20 percent or 30 percent? Well, 30 percent is unlikely,” he said. “But it’s highly likely to be double digits.”
Another question to Henry…Once foreclosures get pushed through the market, will several home shoppers still not be able to afford home purchases because they’re weighed down with school loans, car loans and credit card debt? “That’s a valid concern,” Henry said.
“But the biggest concern in the near term is the growth in Unemployment,” he added. “Unemployment in a normal recession spikes (mortgage) delinquencies. We’re in the rarely charted territory of really high unemployment in the state.”
Here is a list of the 10 metropolitan regions most likely to experience falling home prices into December 2010.
1) Miami-Miami Beach-Kendall, Fla.
2) San Bernardino-Ontario-Riverside
3) Fort Lauderdale-Pompano Beach-Deerfield Beach, Fla.
4) Los Angeles-Long Beach-Glendale
