I have thought for some time that the mid to upper bracket houses were going to continue to see significant drops in value in 2009 with a continuation in 2010. I know several people who are holding off to sell in 2010 when they believe the market will be better. They may be right, but they will likely be selling at a lower price. For example, I don’t see any reason why the $750,000 home today won’t sell for between $700-$725k next year. I can’t see it going up…not next year.
The housing market continues to show signs that it has bottomed on the lower end.  For example, Brooklyn Park has bottomed in my opinion.  Split levels that used to sell for $225,000 in 2005 are now selling for $125-$150k. Sales are going through the roof – up 56% YTD compared to 2008.
Calculated Risk has a good synopisis of articles and blog posts regarding the price compression on the mid to upper market in housing. Â I had posted this story entitled, “The Great Compression” a few months ago on price compression.
Foreclosures continue to rise and now they are coming to the suburbs. They appear to be waning in some of the worst hit areas in the metro.