Home prices to fall further, report shows

Home prices could fall another 12 percent this year, according to a third-quarter report from PMI Group, a private mortgage insurance company. While it’s unlikely that home prices will stabilize before the end of the year, the group says, as it believes that inventory will return to more typical levels in 2010, which will lead to a moderation in home prices. “The biggest declines are likely behind us,” David Berson, chief economist with PMI, said. Berson added that the data shows that a “U-shaped” recovery is more likely than a so-called double-dip or “W-shaped” recovery.