The financial crisis is at its worse with the commercial real estate sector clearly on the red with real estate prices expected to fall by 30% as predicted by hedge fund investor George Soros. The legendary 78-year old Soros said the fall in the price of US commercial real estate properties is inevitable and it will happen drastically and soon. Soros’ grim prediction is being supported by analyst Christopher Whalen who said this is possible with the huge supply surplus of commercial real estate properties resulting from overbuilding coupled with the reduced demand for such properties.

Nomura Securities chief economist Richard Koo said the price of US residential property has to fall by 20% more to bring back the normal balance of rental and purchase price ratios. The real estate crisis is getting worse along with the worsening financial crisis which is a global phenomenon.

World leaders have committed to provide fiscal stimulus to their respective countries to lessen the effects of global recession. A financial summit involving leaders of 20 nations has been scheduled in England to tackle the crisis. Australian prime minister Kevin Rudd said today’s economic problem is huge affecting everyone. He also said developing economies like China should have a larger say in the International Monetary Fund.