Comment by derekp7

Isn't this a side affect of rising interest rates? Two years ago (when I bought my current house) I got about 3.25% interest. Which means a 200K mortgage is $870/mth. With 5%, the mortgage would have to drop to 162K to have the same monthly payments -- almost a 40K drop in house price (about 16%, assuming the mortgage makes up 80% of the home price).