L.A.-area prices down 40% from peak

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U.S. home prices were down 18% in February from a year earlier, according to the Case-Shiller index released today. In L.A. and Orange counties, February prices fell 24% from a year ago and are off 40% from their 2006 peak.

How low will they go? Economist Christopher Thornberg has forecast L.A. prices to fall 55% from their peak. The folks at Case-Shiller, accentuating the positive, note this is the first time in 16 months the national decline was NOT a record fall.

-- Peter Y. Hong