There are predictions the worst is yet to come for the housing market.

Two reports released yesterday show the extent of property price declines for 2008.

Quotable Value's report shows property values fell 7.4 percent over the year, while the Real Estate Institute's December figures show prices fell again from November, with fewer properties on the market.

Professor Bob Hargreaves from Massey University believes the full extent of the decline has not yet hit, given what is happening overseas, particularly in the UK where there have been thousands of job losses recently. He says given the global economic downturn, even the next round of tax cuts and interest rate drops will not be enough to turn around the market.

Prof Hargreaves says the best outcome that could be hoped for this year is a flat housing market, where prices do not fall any further.