Monday, June 16, 2008

JPMorgan Analyst: 25-30% U.S. Home Price Decline Through 2010

Reuters reports:
U.S. home prices may fall as much as 30 percent through 2010 and push high-yield bond valuations close to levels seen during the last recession, a J.P. Morgan analyst said on Wednesday.

"The housing correction is in a down phase," Peter Acciavatti, credit analyst and managing director at JP Morgan Securities Inc, said during a a high-yield bond conference in New York. "We're now going through a phase of deleveraging and the pulling out of easy money."

Home prices may fall 25 percent to 30 percent from their peak in 2006 and not hit bottom until 2010, with greater drops still in subprime mortgage debt markets, he said.


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