Worst Housing Markets for 2009

January 8, 2009 No Comments »

final homes

Well it’s a new year, so I thought I’d take a look at some of the worst housing markets for 2009, based on data from the National Association of Realtors and Moody’s Economy.com.

Los Angeles is expected to be the worst housing market in 2009 with an expected median house price drop of 24.9% this year, followed by an additional 5.1% drop in 2010.

In a close second is severely distressed Stockton, California, where the 2008 median home price of $248,050 is expected to fall 24.7% this year and 4.0% next year.

In third is another hard-hit California community, Riverside, which is expected to fall 23.3% in 2009 and 4.8% in 2010.  The 2008 median price was $256,540.

Traveling to the east coast, the Miami-Miami Beach area, with a 2008 median price of $293,590, is expected to fall 22.8% this year and 6.4% in 2010.

Heading back to California, Sacramento is expected to fall 22.2% in 2009 and 2.3% in 2010.  The 2008 median was $225,140.

Complete List:

1. Los Angeles 2009 Projected Change: -24.9%
2. Stockton 2009 Projected Change: -24.7%
3. Riverside 2009 Projected Change: -23.3%
4. Miami-Miami Beach 2009 Projected Change: -22.8%
5. Sacramento 2009 Projected Change: -22.2%
6. Santa Ana-Anaheim 2009 Projected Change: -22%
7. Fresno 2009 Projected Change: -21.6%
8. San Diego 2009 Projected Change: -21.1%
9. Bakersfield 2009 Projected Change: -20.9%
10. Washington D.C. 2009 Projected Change: -19.9%

So I guess the lesson here is it might be wise to wait before buying in California, as a housing bottom may be further away than one may think.

Sure home prices have already fallen and interest rates are low, but if you can get a home for 20% less next year, why buy now?


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