5 Housing Markets Likely to Further Fall

As potential new homebuyers and move up buyers look to take advantage of the falling home prices, historically low rates, and tax credits there are 5 markets that may have further to fall (as reported by Smart Money).

1.) Detroit: Housing prices fell 4.9% in March, marking the cities largest monthly decline since January 1991. Houses in Detroit are currently selling at 1995 levels.

2.) New York City: New York avoided price declines early, but the city saw its largest monthly decline in March, at 2.5%. Many expect New York to be the last city to see a turnaround given that it was late to the price declines and the impacts of the layoffs on Wall Street.

3.) Phoenix: Home prices in this city have dropped 53% from their peak in June 2006. In March alone, prices dropped another 4.5%. The biggest problem now facing the southwest is the glut of housing inventory to be absorbed.

4.) Portland: This city dropped by 2.1% in March. The Pacific Northwest was amount the last to burst as well and most expect it to be one of the last to join a housing recovery.

5.) Minneapolis: Prices in this city dropped a whopping 6.1% in March, the largest drop of any metro area since data racking began in 1987. More than half of the sales in Minneapolis in March were due to foreclosures or short-sales. A glut of foreclosures will certainly weigh on home prices in this city for months to come.

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