California Tops List for 8 of 10 Worst Housing Markets

In a recent AP story, it appears California is taking the brunt of the housing downturn.  This is not unusual.  Remember that the California housing market has been volatile for 30 years. 

It appears the housing market has not bottomed out yet. For the third quarter, 2008, the S&P Case-Shiller national home-price index fell 16.6%.  While it would appear the market has further to fall, hopefully the rate of decline for the housing market slows down. 

Of the top 100 markets, here are 10 with the worst forecasts.

1.  Los Angeles 

2008 median house price:  $375,340

2009 projected change:       -24.9%

2010 projected change:       -5.1%

The median home price in the L.A.- Long Beach-Glendale metro area is projected to fall nearly 25% in 2009 – the biggest drop in the country.

 2.  Stockton, CA 

2008 median house price: $248,050

2009 projected change:       -24.7%

2010 projected change:        -4.0%

3.  Riverside, CA 

2008 median house price:  $256,540

2009 projected change:         -23.3%

2010 projected change:           -4.8%

4. Miami-Miami Beach

 2008 median house price:   $293,590

2009 projected change:          -22.8%

2010 projected change:             -6.4%

After falling 22% in 2008, home prices in Miami are predicted to plunge another 23% next year.

5. Sacramento

 2008 median house price:  $225,140

2009 projected change:          -22.2%

2010 projected change:             -2.3%

6. Santa Ana-Anaheim

 2008 median house price:   $532,810

2009 projected change:          -22.0%

2010 projected change:           -3.5%

7. Fresno

 2008 median house price:    $257,170

2009 projected change:          -21.6%

2010 projected change:             -3.3%

 8. San Diego 

2008 median house price:  $412,490

2009 projected change:           -21.1%

2010 projected change:             -2.9%

9. Bakersfield, CA.

 2008 median house price:     $227,270

2009 projected change:            -20.9%

2010 projected change:               -2.5%

10. Washington, D.C. 

2008 median house price:   $343,160

2009 projected change:           -19.9%

2010 projected change:             -5.7%

Source: Associated Press

 Thus, it would appear median home prices in California will remain soft at least another year. 


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