"Housing Bubblette"

Interesting article (link here). And yet more evidence of the rising bubblette (link here). PMI Group, the leading mortgage insurer, recently published its 2005 Risk Index (Wall Street Journal link, subscription req'd). It listed the San Francisco Bay Area as one of the top three riskiest areas in the country for potential home price declines. PMI calculates the Bay Area as having a risk index of 479. In other words, there is a 47.9% chance of significant housing price declines within the next two years. That compares to a national risk index average of 161.