B of A’s Ken Lewis sees another 20% dip in home prices

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Bank of America CEO Ken Lewis says the bank expects a further 20% decline in California home prices. From Today’s L.A. Times: ‘... Lewis said Bank of America’s latest forecast called for a further 15% decline in home prices nationwide, with the decline going into at least the first quarter of next year. In the case of California, Florida and other markets that had the biggest booms, a further 20% decline is more realistic, he said.’

For those of you wondering, here’s what another 20% decline would look like if applied to median sales prices as tracked by DataQuick:

In Los Angeles, the median would decline from $422,000 in May 2008 to $337,600. That, in turn, would represent at decline of 38.7% from peak Los Angeles median pricing of $550,000.
In all of California, the median would decline from $339,000 in May 2008 to $271,200. That, in turn, would represent at total decline of 44% from peak California pricing of $484,000.

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Photo: Associated Press