According to the MInister of housing prices of housing have dropped countrywide. New construction is down 11% existing housing by 6%. His theory is that there is a current surplus of housing on the market.
This writer’s theory is that the austerity measures taken by the government to make it more difficult to get new loans has forced the price drop, either passively, for those who are now not able to get a mortgage. Actively it is affected by those who have the ability, qualification plus 40% down payment but understand the market is trending downward and if they wait it out prices will be forced dowm.
The lenient policies of mortgagors here gives opportunity for a homeowner to put off foreclosure and get his financial house in order. Foreclosure is a rare event since most homeowners obtained their mortgage within strict guidelines as well as at least 25% down.
Pscyhologically it is difficult for the homeowner who has seen an annual consistant rise in housing prices have to face the reality that their home is worth 11% less when it comes time to close the deal.
In newer construction neighborhoods, I have observed that the same units are sitting on the market, many since last fall, refusing to lower their price to the new levels. Those who must sell are seeing the 10% drop not in asking but in order to close the deal.