NOVI, Mich., Oct. 6 /PRNewswire/ -- The sub-prime related bubble in the housing sector which was the precursor of the recent global economic crisis, appears to have re-emerged, according to a recent analysis by Ontonix.

In early 2008, analysis of the US housing market data was performed by Ontonix using their proprietary complexity technology. The analysis, which incorporated standard housing market data published by the U.S. Dept. of Housing and Urban Development included approximately 50 market-specific parameters in addition to macro-economical indicators. The results demonstrated that during early 2006 the complexity index (developed by Ontonix) of the market started to rise sharply after an initial dip. As is now well-known, the sub-prime related crisis hit the US economy during mid-2007 approximately a year after the observed sharp rise in market complexity. This crisis was followed by the global market collapse in late 2008, led by the failure of Lehman Brothers bank which was heavily burdened with sub-prime holdings.

Ontonix now warns of a similar trend in housing market complexity, based on their recent complexity analysis using current data.

"It is clearly visible that during the second quarter of 2008, the complexity of the US housing market started to rise again very sharply, repeating the same pattern we observed in 2006. This includes the initial dip followed by a market complexity increase which is proportional to the intensity of the crisis. In the first two quarters of 2008, the market complexity increased by a magnitude similar to the one we saw in 2006. In other words, the pattern is very similar, both in terms of duration, intensity and shape," says Dr. J. Marczyk, CTO of Ontonix.

"The inevitable question, at this point is: will there be a second crisis in the housing market in the US soon? We don't know, although the similarities with the 2007 scenario are ominous," he cautioned.

Ontonix, a privately held company, develops software and offers services in the field of complexity management. Ontonix also offers a first-of-a-kind on-line on-demand service which enables customers to purchase personalized Complexity & Risk Maps(TM) and perform near real-time self-ratings, allowing one to verify the state-of-health of corporations, organizations, asset portfolios, or any kind of business.

SOURCE Ontonix