Housing bubble starting to deflate  

redmustang91 57M  
8729 posts
8/24/2005 8:26 am

Last Read:
3/5/2006 9:27 pm

Housing bubble starting to deflate


There are ominous signs the housing bubble is leaking. some areas are at more risk than others. An article in today's WSJ lists some of the most overpriced markets by various metrics. LA, Orange co., San Diego, Riverside-San Bernadino and Las Vegas are among the ones making the hit parade!

Bubble-Metrics
Rankings of metropolitan areas in terms of the risks of future declines in house prices.

Rank PMI (1) National City (2) CSFB (3)
1 Boston Santa Barbara, Calif. Fresno, Calif.
2 Nassau-Suffolk, N.Y. Salinas, Calif. Las Vegas
3 San Diego Naples, Fla. Los Angeles
4 San Jose Riverside-San Ber. Riverside-San
5 Santa Ana-Anaheim-Irvine Merced,Ca Phoenix
6 Oakland, Ca Stockton, Ca. Bakersfield, Ca.
7 Cambridge, Ma. Port St. Lucie, Fl Sarasota, Fl
8 San Francisco Madera, Calif. Sacramento
9 Providence, R.I. Napa, Ca Jacksonville, Fla.
10 Riverside-San Bern, Ca Medford,Or Naples, Fl.
11 Los Angeles Sacramento --
12 Sacramento Modesto, Calif. --
13 Edison, N.J. San Diego --
14 New York Santa Rosa, Calif. --
15 Detroit Chico, Calif. --
16 Newark, N.J.-Union,Pa. Barnstable Town, Mass.
17 Minneapolis-St.Paul, Minn. San Luis Obispo, Ca
18 Fort Lauderdale, Fla. Oxnard, Calif. --
19 Washington-Northern Virginia Fresno, Calif.
20 Denver-Aurora, Colo. Los Angeles --
21 Warren-Farmington Hills-Troy, Mich. Miami --
22 Miami West Palm Beach, Fla. --
23 Tampa-St. Petersburg, Fla. Vallejo, Calif.
24 Las Vegas Ocean City, N.J. --
25 Baltimore Bend, Ore. --

(1) Reflects labor market data, median incomes and mortgage costs
(2) Reflects incomes, mortgages data and space constraints
(3) Based on interest-only loans, price trend, investor activity, job growth and supply constraints

Buyers beware!

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