House Prices Drop To Record Low

[GTO Man]

House prices fell for the 10 straight month. The October drop was 6.7Z% the largest drop in 16 years.

Obviously I would not want to be selling right now. A great buyer’s market though. There are many foreign buyers with the difference between the Euro and the dollar. That difference has brought many more prospective buyers into the market for many different assets. I think it could make Barrett-Jackson very interesting as far as where the buyers are located.

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[Anonymous]

Our house value still shows a good gain compared to the beginning of 2005. There were some insane jumps in value in 2005 & 2006, however. But …..having a house valued that high, and being able to sell it for that price, are two different things.

Here’s what our current house’s value looks like for the last 10 years:

I suggested to my wife that we should have sold the house when it hit the high point, then moved to Egypt. We could live like pharaohs! w00t.gif (And by that I don’t mean dead, mummified, and buried under some pyramid icon_cheesygrin.gif )

[GTO Man]

Property taxes should not increase for the next couple of years with the value of homes decreasing. It sounds like the credit crunch may start affecting the credit card area also.

[Anonymous]

I doubt they’ll ever decrease in Toronto.

[GTO Man]

I see the median price dropped more than it has in 40 years. I wonder if Bush thinks there might be some problems in the economy.

[moparkid25]

The interest rate drops are beneficial if your refinancing for a better rate and not to pay off credit cards, etc.

My old man is in the process of building his new house and currently has a construction loan. When we were at the bank the other day, the mortgage lady said by the time he converts the const. loan into a home mortgage the interest rate will be somewhere around 5%. That’s good news for people in the buyers/builders market.

[Author]

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