Riskiest real estate in America? You’re standing on it.

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News item: PMI Mortgage Insurance’s analysis of real estate markets across the country finds that the riskiest place to own property in America is ... (wait for it) ... Southern California. PMI measures risk in terms of the probability that housing prices will be lower in two years. These are the markets where PMI believes that’s most likely to be the case:

1) Riverside-San Bernardino-Ontario (94% chance of decline)
2) Las Vegas (89%)
3) Phoenix (83%)
4) Orange County (Santa Ana-Anaheim-Irvine) (81%)
5) Los Angeles (79%)

It’s worth remembering that a recent study by the Federal Reserve Bank of Boston found that the leading cause of foreclosure is ... no, not rising mortgage payments... no, not job loss.... but falling prices. In other words, it’s likely that the markets listed above will see rising foreclosures over the next two years.

Comments? Insights? Email story tips to peter.viles@latimes.com.
Hat tip: OC Register’s Lansner on Real Estate blog