by Calculated Risk on 2/20/2008 06:01:00 PM

From Reuters: Economy.com sees home prices down 20 percent

A rapidly deteriorating U.S. economy will cause home prices to drop by 20 percent peak-to-trough, a leading economist said on Wednesday.

Mark Zandi, chief economist and co-founder of Moody's Economy.com, said he also expects a recession in the first half of this year.

In December, Zandi was forecasting house prices would fall 13% and the economy would "skirt a recession".