Home Prices May Fall by One-Third: Report

A JPMorgan credit analyst tells Reuters that the more than $300 billion in writedowns banks have already taken could mean $3.9 billion worth of credit won't be available.
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By the time the credit crisis finally comes to an end, U.S. home prices might have fallen in value by nearly one-third, according to a

Reuters

report.

The report quoted Peter Acciavatti, a credit analyst at

JPMorgan Chase

(JPM) - Get Report

, who told the news agency that the more than $300 billion in writedowns banks have already taken could mean $3.9 billion worth of credit won't be available.

The report said Acciavatti believes home prices might not stop falling until 2010. "The housing correction is in a down phase,"

Reuters

quoted Acciavatti as saying at a conference. "We're now going through a phase of deleveraging and the pulling out of easy money."

JPMorgan, the report said, estimates that big banks might ultimately record writedowns of as much as $600 billion.

This article was written by a staff member of TheStreet.com.