The housing market is on a slippery slope, with low-priced houses falling the most.

The housing market is slipping, with low-priced houses falling the worst. In this wave of housing market crisis, high-priced housing has much better luck than low-priced housing. Compared with 2006, when housing prices reached their peak,...

The real estate market is on a slippery slope, with low-priced houses falling the hardest. In this wave of housing market crisis, high-priced houses have much better luck than low-priced houses. Compared with 2006, when housing prices reached their peak, the value of top-tier residential properties in the United States has dropped by an average of 38%; the value of bottom-tier residential properties has dropped by 63% from the peak in 2007. "USA Today" quoted research results from Harvard University and stated that this phenomenon is common in major cities in the United States. For example, the price of high-end residential properties in Atlanta in November last year was 23% lower than the peak in 2007, while the price of lower-level residential properties was discounted by 50%. The most expensive house in San Francisco is down 24% from its peak, while the cheapest house is down 54%. Housing prices vary widely across major markets. Lower-end homes in Atlanta sell for less than $122,533, while high-end homes start at $221,679. In San Francisco, the two are 312,546 yuan and 573,577 yuan respectively. McCue, the Harvard researcher, said that in many cities, lower-priced homes gained more in value before prices peaked, and therefore fell more sharply later. For example, in San Francisco, housing prices for low-end housing almost tripled before reaching their peak, while housing prices for high-end housing only less than doubled. McCue said that before the housing market crashed, lenders relaxed loan terms for lower-income households, causing demand and prices for cheaper homes to surge. In addition, homeowners with higher incomes are generally better able to weather a recession and are not forced to sell their homes when the market gets tough. A Harvard research report estimates that the average rate of foreclosures in low-income communities last year was more than double that of high-income communities, making housing prices even more depressed. However, Fannie Mae and Freddie Mac are scheduled to begin reducing the amount of mortgages they will purchase from lenders on October 1, which may put pressure on price reductions for high-end residential properties in some places. In the face of the financial crisis, the two Federal Mortgage Guarantee Agencies increased the loan limits for guaranteed acquisitions at the end of 2008 to stimulate lending in a market with high housing prices. Now the guaranteed purchase limit in many areas will be reduced from 729,750 yuan to 625,000 yuan. The move could allow lenders to raise interest rates on loans that exceed their limits and could affect housing transactions.