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Remodeling Magazine’s Cost vs. Value 2007 report is out and it confirms what we already know - the housing market is in a slump.

The 2006 Report’s lower results were described as a market correction to the previous stellar years. For 2007 the percentage of construction costs recovered is down again, but the rate of decline has slowed.

Some parts of the country are doing better than others, especially the Pacific region (California, Oregon, and Washington), where remodeling costs recouped at resale are 14% higher than the national average.

On the other hand, some of the hottest remodeling cities in the southeast and southwest are performing below the national average. This could be because these areas are also the most active in the country for new housing and, with the increase in housing inventory, new-home prices are dropping, taking resale values down with them.

Remodeling Magazine says remodeling is still a fairly good investment. Two-thirds of this year's projects return between 65% and 80% at resale. That means homeowners are still paying just 20 cents to 35 cents on the dollar for more space, better space, different space.

Many of the "worst" projects were additions. Most people do not add on to homes they are trying to sell. The only exception to this rule is homes with only one bathroom. Realtors say the only way to get these homes to sell is to add a second bath.

4 Best Remodeling Projects (National Average)

1. Siding Replacement - Fiber Cement

2. Deck Addition – Wood

3. Minor Kitchen Remodel

4. Window Replacement – Wood

4 Worst Remodeling Projects

1. Home Office Remodel

2. Back-up Power Generator

3. Sunroom Addition

4. Master Suite Addition

To see the dollar amount and percentage for return on investment for all the projects for the regions go to www.costvsvalue.com