Business Week: Prices could fall another 25%

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Must reading from Business Week’s Peter Coy, who writes that the housing crisis is likely to get much worse. ‘Brace yourself: Home prices could sink an additional 25% over the next two or three years, returning values to their 2000 levels in inflation-adjusted terms.’

More: ‘While a 25% decline is unprecedented in modern times, some economists are beginning to talk about it. ‘We now see potential for another 25% to 30% downside over the next two years,’ says David A. Rosenberg, North American economist for Merrill Lynch, who until recently had expected a much smaller slide.’

Still more: ‘Shocking though it might seem, a decline of 25% from here would merely reverse the market’s spectacular appreciation during the boom.’

Your thoughts? Comments? E-mail story tips to [email protected].
Hat tip: I owe you one, whoever commented on this.