Housing prices are still falling, according to Bank of America/Merrill Lynch economist Michelle Meyer, and this could spread to more affluent homes.

The latest report from LoanPerformance, released this week, showed another notable decline in November, with prices down 5% from the recent peak in May. According to Case-Shiller data, which divides metro-areas into three price tiers, the upper tier had the most moderate rise and fall. But mortgage delinquencies have begun among prime borrowers, which means real estate price plunges could spread to higher-price homes.

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