| Driven by anxiety from the subprime mortgage | | | | population away from the Big Easy to other parts |
| melt down growing into the conventional | | | | of the state. After nearly five years of record |
| mortgage market, only a dozen states still have | | | | appreciation in many parts of the country a |
| housing markets with strong enough appreciation | | | | majority of the nation's markets have seen sales |
| to make the Housing Predictor appreciation list. | | | | slow due to higher mortgage rates and fall out |
| Housing Predictor forecasts more than 250 local | | | | from the subprime loan crisis growing into the |
| housing markets in all 50 U.S. states, and provides | | | | rest of the economy. However, there are 12 |
| real estate news. Only 12 states remain on the | | | | states, including many in the south-east and the |
| list, the lowest number in more than a year, | | | | north-west that are still appreciating with strong |
| indicating a further weakening in the majority of | | | | regional economies. Housing Predictor has |
| real estate markets throughout the nation. | | | | increased its forecast to 3-million homes to be |
| Eighteen states had been on the list until nearly a | | | | foreclosed through 2009. Many mortgage |
| month ago when weakness was determined to a | | | | borrowers are unable to make higher payments |
| high extent in four other states. South Carolina | | | | on adjustable rate mortgages on homes that |
| and Louisiana markets have seen home sales slow | | | | have decreased in value in the last year alone. |
| and prices begin to fall, eliminating these two | | | | Another 2 million adjustable rate mortgages are |
| southern states from the list. In the wake of | | | | due to be recalculated in the next two years, |
| Hurricane Katrina, Louisiana produced a post | | | | causing an additional onslaught of foreclosures. A |
| natural disaster spike that sent prices upward in | | | | growing number of economists believe the U.S. |
| New Orleans and the surrounding area only to see | | | | economy will suffer a major economic blow from |
| sales slow. Louisiana perhaps more than any other | | | | the foreclosure epidemic, which is growing daily. |
| state has seen its housing markets redistribute its | | | | Mike Colpitts is the Editor of Housing Predictor. |