Goldman Sachs released a report saying it expects a 2.5% fall in the Case-Shiller and a bottom in prices by mid-2012.

In an interview with the Wall Street Journal however, Keith Jurow, author of the Housing Market Report at Minyanville, said there is no housing bottom in sight.

Jurow says there are 80,000 delinquent homes in New York's five boroughs that haven't been foreclosed yet, and that 95% of delinquencies are in the four outer boroughs. When banks finally do start to foreclose on these properties, he expects prices in the four outer boroughs to collapse.

Across California, and especially in Los Angeles, Jurow thinks the biggest problem is home equity lines of credit (HELOC). This type of loan uses the borrower's equity in his home as collateral. HELOC interest rates vary, and a spike could see borrowers' repayments jump. The subprime mortgage crisis has in part been attributed to HELOC and Jurow explains the scale of the problem in California:

"There were over 2 million home equity lines of credit that were taken out during just the bubble years in California. A third of all of the home equity lines of credit are in California. Every one of those houses is now underwater. That is scary.

…In 2013, those home equity lines of credit which have been interest only payments, they turn into 15-year amortizing loans. You know what a typical payment is going to be on a home equity line of credit then? $1,500 a month."

Jurow expects more people to walk away from their payments and thinks a turn around in the housing market is just wishful thinking.

Listen to Jurow's interview with the Wall Street Journal:





Read more about Keith Jurow's take on the housing market at Minyanville >