Housing Market Update....

Boy.....I'm sure glad that Cramer has called a "bottom" to the housing market. Of course, he also called a bottom to the market at 11,000 on the Dow last year. Oooooppps.

Here is the forecast from Housing Predictor......one who predicted the housing dowturn, and the severity of the downturn.

Of the 25 WORST housing areas forecast for 2009.....the metro area that is number 25 on the worst list has a decline of over 25%.

Number 1 on the list.........drumroll please.......is New York City. The housing market in NYC is expected to drop over 32% in 2009. This should be no shocker if you think about the lost jobs in the finance area. And for those who think the areas that were hit earliest and hardest by the housing bust........well.......I have some bad news:

#2 Las Vegas: Expected to drop 27% MORE
#3 Miami: Expected to drop 27% MORE
#4 Stockton, CA: Expected to drop 26% MORE
#5 Phoenix: Expected to drop 26% MORE
#10 Los Angeles: Expected to drop 20% MORE

Here is a quote from their website:

"The epidemic of foreclosures is hurting markets especially hard in California, which placed more markets on the list than any other state. Nearly two years ago, Housing Predictor forecast that home values would average total deflation from 50% - 70% depending on the market. Now it appears that some areas will suffer total deflation in excess of 75% on average home values from the market peak."

Here's the link.