JPMorgan Chase says home values will drop 4-5% more in coming year-CNBC

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6/10/11, "JPMorgan Forecasts Another Drop in Home Prices," CNBC, John Carney

"JPMorgan Chase is forecasting another 4 to 5 percent drop in home values over the next 12 months.

Housing Wire has the details:

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 [JPM 41.05 0.07 (+0.17%) ] 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 mortgages under new capital requirements, lending standards

• probably aren't easing soon."

via Drudge Report