Homes price drop

There is plenty of glum when reading about property market in USA. It is interesting to note that the National Association of Realtors reported that sales of single-family homes fell by 13 percent in 2007, the biggest decline since a 17.7 percent drop in 1982. The median price of a single-family home fell to $217,800 in 2007, down 1.8 percent from 2006. Lawrence Yun, the Realtor's chief economist, said it was likely the country has not experienced a decline in home prices for an entire year since the Great Depression. The Bush administration brokered a deal with the mortgage industry to freeze the rates on certain subprime mortgages for five years, hoping that will prevent a further cascade of mortgage defaults. The administration and leaders of the House of Representatives also agreed Thursday on an economic stimulus plan in an effort to keep the economy from tumbling into a recession. It will be interesting to see will home prices in Australia will ever get closer to median price in United States?