Resources provided by RE-Oakton.com

In some of the worst housing markets in the country, deflation has reached double-digit proportions. While housing woes have reached around the country, California appears to be poised to rank among the worse. One of the primary reasons for this is the fact that in the last several months California has experienced the largest rate of deflating home prices. In fact, home prices in California have fallen at levels that have been unprecedented.

Miami, Florida has also proven to be a difficult market at the moment. Here, the weak mortgage market and record high rates of foreclosures have led to decreasing home values as well. In fact, Miami has been among the worst home markets in the country for two years running. The condo boom in Miami just a few years ago has fueled further problems that have now spiraled into a massive real estate bust.

While Florida and California may have been easy to predict as being among the first housing markets to crumble when the real estate market crashed, there are other markets that are on the precipice of falling which have not been as easy to predict. One of the primary reasons that Florida and California were poised to fall so rapidly were rapidly escalating home values during the boom a few years ago.

There are other markets where prices did not increase as much or as quickly, which could be one reason why they were not at the top of everyone's list - until now. Markets now turning into real bears are Massachusetts, Nevada, Indiana and Arizona. Decreasing house values as well as a significant number of foreclosures in these areas are adding to their worsening real estate woes.

Problems are expected to grow worse in many markets as several million adjustable rate mortgages are scheduled to be reset in the coming months. As these mortgages are reset, it is logical to assume that even more homeowners will find themselves facing the reality of being unable to pay their monthly mortgage payments in certain markets. When that happens they will be forced to either face foreclosure or in some cases make a short sell on their home as refinancing is becoming less and less of an option for many homeowners.

The remainder of 2008 still looks bleak for the housing market according to many indicators. Indicators show it likely for new home prices to drop by 18% and second hand home prices will still continue to fall. There is some indication that the crash could level off in the last quarter of 2008 or the first quarter of 2009, but even then experts agree home prices will not rebound to their previous levels.

There are a few bright spots for select areas. In many markets most of the problem sub-prime mortgages have been eliminated through foreclosures or quick sales, leaving only solid mortgage owners and a more reliable market. Also, the stimulus package is anticipated to help the housing market.

First-time home buyers are going to find relief much sooner than current home owners. Most homeowners are still reticent to sell and lose the paper equity they once had in their homes. Most homeowners aren't facing up to the reality that they can no longer get the same prices for their homes they could command just a few short years ago.