Steep Housing Losses on The Way

It’s no secret that housing prices are dropping all over the country. Certain housing markets, however, are going to get hit harder than others, especially those markets that skyrocketed artificially because of speculative buying. A CNNMoney study shows that the below eight housing markets are due for correction.

1. Miami
My hometown, and a place I high-tailed it out of about ten years ago. It was crowded back then and it’s only gotten worse. Home prices doubled over the past decade, but the party is over for now. The 12-month forecast is -24.9%, and the foreclosure rate jumped an astonishing 370%.

2. Ft. Lauderdale
Another Florida city (and where my friends and family live), Ft. Lauderdale hasn’t escaped the drama. The increase in the foreclosure rate 1/2 an hour north of Miami is at 450%, and the 12-month forecast is just below that of Miami’s at -22.2%. Not until April, May, or June of 2010 will housing hit bottom according to experts.

3. Orlando
The Sunshine State definitely takes the wollop in terms of housing. Orlando, home of Mickey and Minnie Mouse, had a foreclosure rate jump of 399%, and the median home price is $245k.

4. Phoenix
The land of heat will be seeing a 12-month forecast of -18.3%. The change in the foreclosure rate, modest compared to those above, is at 9%.

5. Las Vegas
What happens in Vegas stays in Vegas, but with housing as it’s been there over the past few years and the insane construction going on, I’m not sure how long it will stay in Vegas. The change in the foreclosure rate is at 2%, and the 12-month forecast stands at -18.3%.

6. West Palm Beach
Back to South Florida. West Palm Beach is known for massive homes and wealthy homeowners, but seems there’s trouble in paradise. An impressive 435% change in the foreclosure rate goes along with the -17.6% 12-month forecast.

7. Tampa
Oh boy, Florida. A -17.1% 12-month and a 281% change in the foreclosure rate keeps this city competing with the rest of her sister cities around the big FLA.

A few other markets around the country, most notably in California, keep pace with the above dire housing markets, but the trend is clear–housing is going down, and things are going to get ugly.