Analysts for Goldman Sachs Hui Shan and Sven Jari Stehn predict that the U.S. housing market will reach a bottom in the second half of this year. The analyst built a model that considers equilibrium home prices for each of 147 metropolitan statistical areas. Data points include population, income, lending costs, and construction costs. Also factored are the number of subprime loans in markets as well as excess supply of homes.
Among the best performers include Miami, Detroit, and Cleveland. Among the worst performers are Atlanta and Portland with projected 8% and 6% declines respectively.