The risk of housing price declines in the 50 largest U.S. metropolitan areas is growing, appreciation is slowing and affordability has worsened, according to PMI Mortgage Insurance Co. The study, released on 17 January 2006, said 11 metropolitan areas now face a 50% or greater risk of price declines. Appreciation has slowed in many top markets and affordability is still a challenge for many families.

Nationwide, there exists a 26.1% probability of an overall house price decline, as measured within the next two years and across the 50 largest housing markets, up from 21.8% last quarter. However, chief risk officer of PMI, Mark Milner, believes that the continued strength of the economy bodes well for a "soft landing" of the nations housing market.