The Only Housing Markets to Drop This Year

10. Atlantic City, N.J.
> Pct. change: -3.0%
> Sales price 2012: $214,000
> Sales price 2011: $220,600
> Aug. 2012 Unemployment: 12.2%
> Aug. 2011 Unemployment: 11.9%

From 2009 to 2011, home prices in Atlantic City barely changed, rising 0.9% even as nationwide prices declined by 3.4%. However, in the last 12 months ending in September 2012, Atlantic City’s median sale price fell to $214,000, down from full year 2011, when median sale price was $223,200. The housing market is likely to be further burdened by Hurricane Sandy, as renovation costs rise and potential owners consider other locations. According to Corelogic estimates, the storm exposed an estimated 20,000 properties worth about $4.8 billion in the metropolitan area.

9. Kingston, N.Y.
> Pct. change: -3.3%
> Sales price 2012: $199,200
> Sales price 2011: $206,100
> Trend: Consistent fall
> Aug. 2012 Unemployment: 9.3%
> Aug. 2011 Unemployment: 8.0%

The Kingston housing market recently suffered a major blow when the median sale price sank by some 23% in one quarter — from $202,700 in the fourth quarter of 2011 to $156,800 in the first quarter of 2012. Prices then rebounded quickly to $198,600 in the second quarter and $199,200 in the third, but they are still at a multi-year low. The median sale price in the Kingston area was $208,400 in 2009 and $213,800 in 2010. Similar to many of the metro areas on this list, the unemployment in the region was above the national rate as of late. The unemployment rate in Kingston was 9.4% in July and 9.3% in August, much higher than the 8.3% and 8.1% jobless rates nationwide, respectively.

Also Read: America’s Most Expensive Neighborhoods

8. Newark-Union, N.J.-Penn.
> Pct. change: -3.4%
> Sales price 2012: $389,400
> Sales price 2011: $403,100
> Aug. 2012 Unemployment: 9.1%
> Aug. 2011 Unemployment: 8.6%

In the third quarter of 2011, the median sale price of a house in the Newark-Union area reached a high of $403,100. Since then, home prices in the region began a year-long descent. By the third quarter of 2012, prices were down by more than $13,000. Although the area’s home market has partly recovered — third-quarter median home price is nearly $20,000 greater than the median sale price for the full year 2011 — the area’s economy still faces many challenges. Through September, the number of manufacturing and government jobs has declined, allowing for a paltry 0.9% growth in the overall number of jobs in the area.

7. New Haven-Milford, Conn.
> Pct. change: -3.5%
> Sales price 2012: $227,200
> Sales price 2011: $235,400
> Trend: Recent drop
> Aug. 2012 Unemployment: 9.7%
> Aug. 2011 Unemployment: 9.4%

Between 2009 and 2011, the median sale price of a home in the New Haven area fell 5.3%, more than the national average drop of 3.4%. Only 29 of the nearly 150% In 2012, the sale price has been going up, with prices in the third quarter of 2012 $4,000 above the full-year 2011 level. The median sale price was $193,100 in the first quarter of 2012. That soared to $223,500 in the second quarter. The unemployment rate in the New Haven area was far above the national rate in recent months — in July and August, it was 9.7%.

6. Champaign-Urbana, Ill.
> Pct. change: -3.6%
> Sales price 2012: $149,400
> Sales price 2011: $154,900
> Aug. 2012 Unemployment: 7.3%
> Aug. 2011 Unemployment: 7.8%

Champaign-Urbana bucked the national trend during the Great Recession. While home prices fell by 3.4% nationwide between 2009 and 2011, they actually rose by 2.3% in the region. Over the last year, however, this trend has reversed. Over the last 12 months, the U.S. real estate market has been rallying, with the median sales price up 7.6% year-over-year. But in Champaign-Urbana, the median home price has declined by 3.6%.