Indy house prices unlikely to slide further, report says

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Odds of house prices in the Indianapolis area dropping further in the next two years are low, according to a report by PMI Mortgage Insurance Co.

The metro area has an 8.4 percent chance of seeing its average sale price decline by the middle of 2009, the Walnut Creek, Calif., company said. That’s optimistic compared to Los Angeles, which is pegged at having a 58.6 percent chance of falling.

Most areas with the greatest odds of decline had red-hot housing markets-Orlando, Sacramento and Boston. By contrast, Rust Belt cities like Indianapolis didn’t experience the boom, thus had less to lose. Risks of declining prices in Cincinnati and Columbus, Ohio, for example, are less than 10 percent, the report said.

The median sale price in May in the Indianapolis area was $125,000, down 2 percent from a year earlier, according to the Metropolitan Indianapolis Board of Realtors.

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