States with the Most Miserable Housing Markets

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10. Maryland
> Housing misery index: 31.6
> Home price decline from peak: 23.7% (12th largest decrease)
> Projected home price change (Q3 2011 – Q3 2012): -2.4% (14th largest decrease)
> Unemployment (Dec. 2011): 6.7% (15th lowest)

Maryland is the wealthiest state in the country in terms of median household income. It also happens to have the third-lowest poverty rate in the country. Despite this relative wealth, the state’s housing market has suffered from a number of problems. Since their peak, home prices in Maryland have dropped 23.7% — the 12th largest decrease in the nation. Home prices are projected to continue to fall through the third quarter of this year. However, from that quarter through the third quarter of 2013, home prices are expected to turn around, increasing 4.4%.

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9. Washington
> Housing misery index: 32.8
> Home price decline from peak: 26.6% (8th largest decrease)
> Projected home price change (Q3 2011 – Q3 2012): +0.4% (16th smallest increase)
> Unemployment (Dec. 2011): 8.5% (17th highest)

Since their prerecession peak in the third quarter of 2007, home prices have fallen 26.6% in Washington. This is the eighth-largest drop from peak in the country. In 2011, relatively few homes were in foreclosure in the state, standing at 1.3% of the total market. By the third quarter of this year, home prices are projected to increase just 0.4%, one of the smallest increases in the country. However, the following year, the market will finally begin to rebound in the state. Fiserv estimates home values will increase by nearly 10% between Q3 2012 and Q3 2013.

8. Georgia
> Housing misery index: 34.0
> Home price decline from peak: 26.0% (10th largest decrease)
> Projected home price change (Q3 2011 – Q3 2012): -1.7% (16th largest decrease)
> Unemployment (Dec. 2011): 9.7% (8th highest)

Georgia had the fifth-highest rate of foreclosures at the end of 2011, and homes on which owners were delinquent 90 days or more on mortgage payments in the country at 8%. Georgia’s home prices also have fallen 26% since their peak — the 10th-largest drop. This, combined with the fact that home prices are expected to drop by another 1.7% by the third quarter of this year, has caused construction to remain particularly low in many areas. For example, in Atlanta, the state’s largest city, construction continued at less than one-fifth of prehousing bust levels in January of this year, according to Trulia.

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7. Rhode Island
> Housing misery index: 34.5
> Home price decline from peak: 27.0% (7th largest decrease)
> Projected home price change (Q3 2011 – Q3 2012): -0.5% (23rd largest decrease)
> Unemployment (Dec. 2011): 10.8% (3rd highest)

Like Michigan, Rhode Island’s economy has continued to suffer from long-term problems, and residents seem to agree. According to Gallup’s Job Creation poll, fewer employers are hiring in the state than anywhere else in the country at the moment. According to a separate Economic Confidence Poll created by Gallup, just 5.4% of those polled in Rhode Island believe the U.S. economy is in good or excellent shape. From their peak in the second quarter of 2006, home values in the state have fallen 27%, the seventh-biggest decline from peak in the country. Median income is above-average in Rhode Island, but unemployment is at 10.8%, the third-highest rate in the country. According to Fiserv, home values in the state are expected to recover at a rate of just 2.5% per year by the end of 2016, the ninth-lowest rate in the country.

6. Idaho
> Housing misery index: 34.5
> Home price decline from peak: 29.3% (6th largest decrease)
> Projected home price change (Q3 2011 – Q3 2012): +4.9% (the largest increase)
> Unemployment (Dec. 2011): 8.4% (18th highest)

Home prices in Idaho did not begin to significantly drop until 2008. From the third quarter of that year through the third quarter of 2011, home prices fell 29.3%, the third-largest peak-to-current decline in the country. From the third quarter of 2010, prices have dropped 8.3%, the second-largest amount. However, the state is forecast to make an exceptional turnaround. By the third quarter of 2012, home prices are projected to recover by 4.9%. Over the next five years, prices are expected to increase by 7% — the largest increase in the country.