State Capitol building in Sacramento
2008 median house price: $225,140
2009 projected change: -22.2%
2010 projected change: 2.3%
High jobless rates and low population growth are helping burst the capital city's inflated housing market. Prices are expected to fall another 22% in 2009, after tumbling 34% in 2008.
NEXT: Santa Ana-Anaheim
Source: Sources: National Association of Realtors; Moody's Economy.com