40% Chance of Lower Home Prices
Jacksonville Business Journal - 3:41 PM EDT Tuesday, June 19, 2007
There is a two in five chance that home prices will be lower in Jacksonville in two years, according to figures from PMI Mortgage Insurance Co.
The company's 2007 U.S. Market Risk Index ranks the 50 largest metropolitan statistical areas in the country according to the likelihood that prices will drop in the next two years. The rankings are based on home price appreciation, per capita household income and mortgage rates.
Jacksonville's score of 394 translates into a 39.4 percent chance prices will be lower in 2009. Four Florida MSAs -- West Palm Beach, Orlando, Fort Lauderdale and Tampa -- have a better than 50 percent chance of prices being lower in two years.
Jacksonville's score was No. 22 in the rankings of the top 50 MSAs, in part because appreciation of home prices went from 22 percent in the first quarter of 2006 to 7 percent a year later.
"The market's changing tide doesn't mean it is a bad time to buy or own a house, but it is a reminder that home ownership is a long-term investment," said Mark Milner, chief risk officer for PMI. "For buyers, in many areas it's a much friendlier market than it was even a year ago."
I would say it is definitely a buyers market!! The interest rates continue to creep up...and then they creep back down!! If you're considering buying a home--give me a call. I'll be happy to help.