Largest single year drop housing prices in 35 years recorded in September.

[Selatius]

That's a whopper:

WASHINGTON - The median price of a new home plunged in September by the largest amount in more than 35 years, even as the pace of sales rebounded for a second month.

The Commerce Department reported that the median price for a new home sold in September was $217,100, a drop of 9.7 percent from September 2005. It was the lowest median price for a new home since September 2004 and the sharpest year-over-year decline since December 1970. The weakness in new home prices was even sharper than a 2.5 percent fall in the price of existing homes last month, which had been the biggest drop on record.

http://news.yahoo.com/s/ap/20061026/ap_on_bi_go_ec_fi/economy

Anyone wanna take bets on how low they will go?

[Nye Bevan]

1. My guess is a fall of 30-40% over the next 4 years or so

which I think is a good thing. Too many people are unable to afford to buy houses at current prices.

[jpak]

2. Gee - what do most American homeowners really worry/care about???

the value of their homes???

or

the value of the Dow Jones Index????

Chimpy has some 'splainin' to do about this...

[bluerum]

3. A job , so I can pay my mortgage. nt

[robbibaba]

4. neither!

gay marriage is the real issue. oh, and flag burning.

[1932]

8. DJI is going up because real estate investors are pulling money out of

real estate and putting it into stocks.

Just a guess.

[cliss]

5. This is going to be

a Wild Ride.

Those who will lose:

1) Home Flippers
2) People who paid too much for their house
3) People who have Home Equity loans attached to their house
4) People who are living beyond their means
5) Banks - BIG TIME

[MadMaddie]

6. Do you think that this will surpass the housing bust in the

80's......? I am starting to get the feeling that it will ..Forclosures are already up 51% compared to this time last year...

[UpInArms]

7. biggest losers

(who won't show up as such for at least a year - because they will artificially keep interest rates low) are the holders of the ARMs.

[1932]

10. People with second, third, fourth and fifth mortgages are no better off.

Anyone who has not paid down their mortgage principle below market value will feel the pain if they're forced to sell and/or they can no longer pay their debts.

And that's nothing to be happy about. It's really sad. A lot of families who just wanted a home are going to lose everything.

[1932]

9. Banks aren't going to lose a thing. Many people have been paying

only interest. They haven't touched the equity. That means the banks have gotten nothing but profit from the loans and when people default, they'll get their homes too.

Banks are definitely not going to lose. They created the fiasco (with the assistance of legislatures who have been turning a blind eye to their tactics and lack of discretion in lending, which has contributed to the bubble).