An average depreciation rate of 4.2% would be the largest depreciation the U.S. housing markets have seen since 1991. Housing markets in the majority of the nation have an over supply of inventory of homes, condos and other properties on the market. Many areas have their highest inventory in years with declining prices. But 18 states markets are experiencing appreciation, despite the nationwide slump in housing sales. Another ten states are stabilizing.

The Housing Predictor forecast model took the expected foreclosure crisis into account in its forecasts and the web site has been credited for its correct forecast of more than 2-million homes that will be foreclosed through 2009, mainly due to fall out from the sub-prime loan crisis.

However, many markets have been insulated from the sub-prime crisis. Second home and vacation markets and many markets above the $300,000 price mark are not experiencing many foreclosures due to the sub-prime crisis since buyers in those price ranges usually do not obtain sub-prime loans, which are made to shaky borrowers with damaged credit histories.

Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states and also provides new real estate listings and foreclosure listings with its new partner, Realty Store.com.

The web site, which provides unbiased forecasts, is regularly consulted by major financial institutions and Wall Street brokerage firms, banks, mortgage companies, real estate companies and consumers for its up to date forecasts.

The nation's housing markets are under going otherwise normal transitions to more steady sales in many parts of the nation unaffected by the sub-prime crisis after five years of record appreciation in many markets.

Housing Predictor expects 2008 home sales to also be soft in many areas of the country, but to show gradual improvement in growth towards the end of the year in heavily populated western states and the northeast.