In the past year, house prices have fallen to 4.2 percent of their original price. This comes after the shock of improper lending by banks. But in the coming year, there does not seem to be an end in site. Joshua Shapiro, chief American economist says that - The worst is yet to come ‘. It is estimated that in the coming years house prices will fall all the way to 5.7 percent, making it the largest real estate year in the last 40 years. Currently in the United States there are more than 2 million homes for sale.

The current problem of the fact that there is too much supply of new housing, but not enough demand. In 2007, almost 4 million new houses were built on top of nearly 250000 that had shielded. This is projected to rise to 1 million euros over the next few years.

However, some places are more affected than others. Cities such as Detroit and Cleveland this does not happen through a housing boom will be less affected than other cities such as Miami and Las Vegas, which have undergone a major housing and development boom.

The housing market isn? T expected to return until the end of 2009, and even then, experts predict it will take years before the market is back to the state prior to 2007.

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