More Misery for Housing

The bad news for the housing market just keeps piling up.

About 44% of the U.S. population lives in metropolitan areas where home prices are falling, according to the latest report on the dismal state of the real estate market.

Residents of Nevada are facing the largest average decline, with home prices expected to be down 4% on an annualized basis this year, says the report, which was made by the structured finance group at DBRS, an independent credit agency.

DBRS based the report on figures from the Office of Federal Housing Enterprise Oversight that track housing price data through June of this year, the latest period available.

While Nevada tops the list for average declines, California has the most cities expected to see at least 4% annual home price drops this year.

The region of Sacramento, which saw the first innings of the housing boom, will see an 8% drop in prices this year, the report says. San Diego, home to the condo boom, will see prices drop about 6%, while Oakland is expected to record a 5% decline.

Parts of the central valley region of the state -- cities like Stockton and Modesto -- will see declines greater than 10%, according to the report.

The issue is important not only for homeowners, but also for investors in the struggling residential mortgage-backed securities market.