Louisiana is still recovering from the wreckage that Hurricane Katrina had caused. While a lot of home rebuilding projects were launched to start the state’s vast restoration, more areas have yet to be occupied after the storm’s commotion. It will take immense funding and a longer time for the Bayou State to fully return to its heydays.

New Orleans has a lot of repair to accomplish. The government still falls short of its reconstruction efforts especially now that the recession has taken its toll on the budget. The city is also poised to face more job cuts from the oil and technology companies. RealtyOutlook.com predicts home prices to fall by 13 percent and sales to start flat and decline by the middle of the year.

Lafayette’s credit markets are putting the reins on their loans. This has affected home sales so far that have reached low levels in 2008. Surprisingly, only a slight drop in home values occurred. More grant money is on the way through the Lafayette Bond Program that will allow home buyers to access low down payment schemes. Still, home values will be unable to resist the credit crisis as it is expected to drop by 4.5 percent this year.

Much to the dismay of the local real estate industry, Baton Rogue is facing a rise in foreclosures that are closer to its previous level seven years ago. Industrial activity has slowed down but trade and transportation, tourism and hospitality services are expected to still provide support to the economy. RealtyOutlook.com expects home prices to fall by 4 percent this year.

Alexandria’s recent job cuts are forecasted to further worsen the city’s economy. Home values are to fall down by 5.5 percent in 2009. There’s no indication that the local values are bottom figures yet as housing inventory continues to rise and add downward pressure to the general level of home values.

Monroe, home to manufacturing and banking centers, experienced increase in home sales after Katrina slammed Louisiana. But just as the property market was about to gain momentum, the nationwide crisis hammered the city’s economy. Jobs are highly affected as this year will be worse for manufacturing and retail firms in the area. Expect home values to slightly go down by 3 percent.