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According to Moody’s Economy.com housing prices across the US are expected to fall more than thirty percent before it recovers.

Mark Zandi, chief economist, and Celia Chen, director of housing economics, also stated in the report that nationally the housing market recession will continue through early 2009. While it will stabilize in 2009 it will not be until 2010 before any large improvement in sales, construction, and pricing. Punta Gorda, Florida and Stockton, California will be among the hardest hit markets in the US suffer an estimated 35.3 and 31.6 percent decline. Other major markets affected the worst will be Arizona, California, Florida and Nevada.

The report also stated that the fundamental problem with the market is the large amount of unsold inventory. Home sales should hit a bottom in early 2008 which will mark a 40 percent drop.  The US Census Bureau said as of the third quarter of 2007 there were approximately 2.1 million vacant unsold homes for sale which is equal to 2.6 percent of the stock for owner occupied homes.

To read more about housing prices drop 30% before slump ends head on over to CNBC.