Merrill Lynch: Home prices to fall more than 25 percent
Merrill Lynch published a very gloomy forecast today, revising earlier estimates downward. Read the whole report here.
-- We now expect an outright contraction in economic activity in the first three quarters of 2008. This downturn should be led by consumer spending.-- We anticipate job losses in the range of 2.5 million, close to what we saw in the last recession. This in turn is expected to push the unemployment rate up, to 5.75% by the end of 2008 and to 6% by early 2009.
-- Home prices are expected to decline by 15% in 2008 and by a further 10% in 2009, with more depreciation likely beyond the forecast period.
Comments
I hope the housing forcast is accurate but the decline faster. I've been waiting to buy another house for 5 years. These prices cannot be sustained. If prices go down to the point I'm willing to pay then I will start my consumer spending with savings, not borrowed money.
Posted by: Raymond | January 23, 2008 9:34 AM