by Calculated Risk on 4/12/2007 04:25:00 PM

From Bloomberg: Heebner Says Home Prices May Fall 20% Amid Bad Loans (hat tip Brian)

Kenneth Heebner, manager of the top-performing real-estate fund over the past decade, said U.S. home prices may plunge as much as 20 percent because of rising defaults on riskier mortgages.
...
``It will be the biggest housing-price decline since the Great Depression,'' Heebner, 66, said today in an interview in Boston. Prices may fall by a fifth in some markets, he said.

That would leave home prices at levels last seen in 2003 and 2004 ... The damage from high-risk mortgages will slow the U.S. economy, though not enough to send it into a recession ...