by Calculated Risk on 4/28/2008 04:19:00 PM

From Bloomberg: KB Home's Broad Says Home Prices May Drop Another 20%

Eli Broad ... said he expects home prices to drop another 20 percent.

``I don't think we're anywhere near a bottom in housing,'' Broad told Bloomberg TV at the Milken Institute Conference in Beverly Hills, California. ``We're going to have a big inventory of unsold, unoccupied homes that's going to take three or four years to clear out.''
...
``People were using their home equity as really an ATM machine,'' Broad said, referring to an automatic teller machine. ``They were spending more money than they were earning by taking equity out of their home. That couldn't go on indefinitely. We're now paying a price for that.''