The PMI Group, which insures mortgages throughout the United States, has issued its 2008 report on the state of the nation's housing market. And, predictably, there's cause for concern in many areas.Riverside, California, for example, is predicted by PMI to have a 93% chance of lower home values 24 months from now. Phoenix has an 84% likelihood of lower prices, based on the PMI analysis. Miami checks in with a 61% chance of falling prices.
So where is Denver?
PMI, which stands to lose a lot because it makes underwriting decisions based on these risk factors, assigns the Denver market a 1% chance of lower prices two years from now.
One percent... which, according to PMI, equates to a 99% probability of higher prices over the next two years.
One word of caution - the PMI report discusses Denver as a whole. As you know, there are scores of "submarkets" that make up the Denver metro region. Some areas will outperform others - this is always the case. Work with your broker to choose an area with solid fundamentals, and you should be in great shape.
(Click on the image to see the full report)
