Moody's revises its housing price predictions

Last October, I reported that Moody's was predicting that the Phoenix housing market would see price declines of 9.3% between the first quarter of 2006 and the second quarter of 2008, which I called "wildly optimistic."

Now Moody's has issued a new report which claims the Phoenix housing market will see price declines of 17.8% between the second quarter of 2006 and the second quarter of 2008--they've doubled the percentage of drop for a time period that's three months shorter.

I'm guessing this will be closer to accurate--but still shy of the mark, unfortunately.

The report also predicts a drop of 11.7% for Tucson, lower than October's prediction of a 13.4% drop.