Property in U.S. Cities to Fall $1.46 Trillion in '08 (Jim Loney)

MIAMI (Reuters) - Property values in U.S. cities are expected to tumble by $1.46 trillion in 2008 due to the housing downturn and subprime mortgage crisis that has pushed the U.S. economy to the brink of recession, American mayors were told on Friday.

Just eight months ago, researchers predicted property values would shrink by $1.2 trillion this year, according to the study by Global Insight for the U.S. Conference of Mayors meeting in Miami.

"Metro areas are expected to suffer a $1.46-trillion decline in property values in 2008," the study by the economic and market research firm said. "The increased loss is a result of even greater deterioration in home markets and prices than anticipated."

Ninety-three percent of metropolitan areas -- which collectively are home to about 85 percent of the U.S. population -- are expected to see declines in property values, the study said.

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