22 Cities are expected to see housing prices drop — is yours one of them?

Moody’s: Home prices to fall

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Fortune published a report created by Moody’s Analytics division that suggests housing prices could fall by up to 10% in some U.S. cities. According to Mark Zandi, Moody’s chief economist, the dip will not represent a nationwide correction in home prices.

Zandi predicts that home prices will drop to zero over the next twelve months.\u00a0He predicts that some of the most expensive housing markets will see a decline.

Zandi attributes the market’s cooling to rapidly rising mortgage rates in a market already overvalued.\u00a0Fortune reported that Zandi doesn’t believe the current market prices are indicative of a housing bubble because speculation is not accompanied by overvaluation.\u00a0Fortune reports that he does see some “speculation creeping into” markets such as Phoenix and Charlotte, where they are overvalued by 46%, and 33% respectively.

If a market for housing is considered overvalued, this means that home prices are higher than average and local incomes.\u00a0Moody’s research found that 96% of 392 metro area markets were “overvalued,” with 149 being at least 25%.

Fortune also published an interactive chart that shows the overvalued markets.\u00a0The values range from -6% to -6%. This means that home prices are less than expected when you factor in local incomes. Boise, Idaho is the most overvalued place in the country at 73%.

These are some of the most expensive regions and cities where home prices can be expected to fall by 5% to 10% in the next 12 month…

1. Boise, ID \u2014 73%.

2. Sherman-Denizon, TX \u2014 60%.

3. Muskegon, MI \u2014 59%.

4. Morristown, TN \u2014 57%.

5. Homosassa Springs, FL \u2014 57%.

6. Lake Havasu City \u2014 Kingman, AZ \u2014 56%.

7. Kahului-Wailuku-Lahaina, HI \u2014 55%.

8. Dalton, GA \u2014 55%.

9. Flagstaff, AZ \u2014 51%.

10. Pocatello, ID \u2014 49%.

11. Bremerton-Silverdale-Port Orchard, WA \u2014 48%.

12. Albany-Lebanon, OR \u2014 48%.

13. Idaho Falls, ID \u2014 48%.

14. Nashville-Davidson-Murfreesboro-Franklin, TN \u2014 48%.

15. Palm Bay-Melbourne-Titusville, FL \u2014 48%.

16. Clarksville, TN / KY \u2014 48%.

17. Bellingham, WA \u2014 47%.

18. Myrtle Beach-Conway-North Myrtle Beach, SC / NC\u2013 47%.

19. Phoenix-Mesa-Chandler, AZ \u2014 46%.

20. Cleveland, TN \u2014 46%.

21. Asheville, NC \u2014 46%.

22. Flint, MI \u2014 46%.