JPMorgan Forecasts Another Drop in Home Prices
JPMorgan Chase is forecasting another 4 to 5 percent drop in home values over the next 12 months.
In its June 2011 Home Price Monitor Report, the bank lowered its base home price forecast to a level that's 37 percent under peak price levels.
The financial-services firm blames its lowered price expectations on a supply-and-demand imbalance, as well as anemic consumer demand and disappointing economic reports.
Making matters worse, JPMorgan's Home Price Monitor report points to a 12 percent drop in pending home sales in the month of April.
The bank said, "A looming question is when and if lending standards will ease enough to boost demand."
Of course, with big banks such as JPMorgan Chase saying they won't own mortgagesunder new capital requirements, lending standards probably aren't easing soon.
Questions? Comments? Email us atNetNet@cnbc.com
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC