Well, now even J.P. Morgan has gone HousingPANIC.
Does anyone know what a 58% fall in home prices looks like?
Do you have any idea what the world looks like after the knock-on effects of a 58% fall in home prices? Or 37% nationwide?
Example: Pay $500,000, get foreclosed, bank sells for $210,000.
No, that's not data the NAR wants you to see.
No, that's not what Connie de Groot, Mike Norman, Tom Adkins, Greg Swann, Nicholas Retsinas, David Lereah or Lawrence Yun wanted you to believe.
But believe now you will. California prices are already down a sickening 41%. Hitting 58% is a walk in the park. And 37% nationwide might be optimistic.
I feel sorry for all the innocent people caught up in this. Tradesmen who went to work for years and years in homebuilding, earning an honest living. Honest appraisers, who wouldn't fudge a number to make a commission. Home Depot salesmen, who really wanted you to have the right screw. And people who 'bought' homes because that's what people should do.
They listened to realtors on commission, they watched housing porn, they laughed at HP, and they got killed.
Never again America. Seriously, never again. George Bush, the US Congress, appraisers, ratings agencies, realtors and mortgage brokers should now be seen on the same level as terrorists. Instead of using bombs and guns, they used happy words, broken promises and glossy brochures. And they did much, much more damage to America than Osama bin Laden ever could.
In a presentation on its WaMu acquisition, J.P. Morgan forecast a 58% peak-to-trough slump in California home prices if the U.S. enters a severe recession. In Florida, house prices could fall 64% in such a scenario, while nationwide prices could drop 37%, the bank said.
September 26, 2008
FLASH: J.P. Morgan predicts California home prices to crash 58%. Yes. 58%. And for US home prices to fall 37% from their fraud-and-speculation-peak
Posted by blogger at 9/26/2008