PMI – A New Way to Look At Regional Housing Prices
Is your house at risk of being overpriced in todays market? There is a new tool out that tries to quantify the numbers and determine which markets have the greatest risk in them.
But a group of economists in the business of assessing financial risk have come up with a new statistical tool to detect exactly that kind of real estate price bloat. It’s called the Valuation Index, and it was released Tuesday by PMI Group of Walnut Creek, Calif., one of the largest insurers of home mortgages.
This forcasting tool, and it is only a tool, looks at the housing market and assesses the risks involved for mortgage and insurance companies. The areas of the country that have the greatest risk are in the western parts of the country. .
But it’s far from the most overvalued region in the country. That distinction goes to — you guessed it — California’s frothiest areas, including Los Angeles (33.7 percent overvalued), San Jose (26.5 percent) and San Diego (22.3 percent). In the Southwest, houses in Las Vegas are 25.5 percent overvalued, according to PMI, and homes in the Phoenix-Scottsdale area are 22 percent overpriced. via the Waxhington Post
So if you are looking to see how your region is doing in this metric, read the report at the PMI Institute.
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
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I see the question I have, but no response. I do not have a for sale sign up ...
