House Prices to Plunge 20%, Says Cheery S&P

Even through the normally rose-coloured glasses of Standard and Poors, the housing market looks screwed. In S&P’s most recent commentary, the financial services giant suggested that house prices could fall by 20% from their 2006 peak. The verdict on the labour market wasn’t much more promising:

When we resolved the CreditWatch status of several mortgage insurer ratings on Nov. 21, 2007, we stated that if unemployment rose above 6%, incurred losses for all mortgage insurers would be significantly higher than our expectations. Our most recent macroeconomic forecast shows unemployment reaching 5.8% in 2009, and there is considerable uncertainty in the job markets.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.