Report: Baltimore home prices could keep falling - Baltimore Business Journal:

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California-based PMI (NYSE: PMI) reaches that conclusion in its Secone Quarter 2009 Economic and Real Estate Trends andits U.S. Market Risk Index. The report said approximatelyg 85 percent ofthe nation's 381 metropolitan statisticalo areas (MSAs) are now facing increasecd risk of lower home prices in 2011. Florida, California, Nevadz and Arizona continue to have the highesrt risk scores but an increase risk of lower futurd prices is now spreading across all regionss of the nation because of the significanrt increases in unemployment andforeclosurde rates. The Washington, D.C.
, area which includes the District, Northern Maryland and parts of WestVirginia — showed a 92 percenyt chance of lower prices. Baltimorew has a 90 percent chance of homepriced dropping, according to the report. "Rapidlyu rising foreclosure and unemployment continuing declines in house and weakening consumer demand all workedf to increase risk in the general and the housingmarket specifically," said Davide Berson, PMI's chief economist and strategist.
"As a resultr of the continued weakness in and the relatively low levelp ofinterest rates, improvements in affordabilityt across the nation's MSAs will continue to incentivizw repeat and first-time homebuyers back into the market." The areasa with the least chance of lower prices, each with less than a 6 percenr probability, include Cleveland; Pittsburgh; Columbus, San Antonio; Houston; Dallas and Fort Texas, according to PMI. The risk of prices droppinf runsat 99.9 percent in Fort Lauderdale, West Palm Beach, Orlando, Tamp a and Jacksonville in Riverside, Los Angeles, Santa Ana, Sacramento and San Dieg in California; Las Vegas; Phoenix; Providence, and Detroit.