Residential real estate isn’t the only place where prices are dropping. Commercial real estate prices are poised to drop as well. With subprime lending issues shaking up the entire economy, there are plenty of people who are reluctant to get involved in large deals with risk. Bloomberg reports on the latest real estate trend to be hit:

“People aren’t willing to do deals right now,” said
Howard Michaels, the New York-based chairman of Carlton Advisory
Services Inc., which has arranged financing for real estate
purchases including the Lipstick Building in midtown Manhattan.
“The expectation is that prices will come down.”

Of course, the real estate market is regional and local. Therefore, even though the overall real estate trend is to head down, there are places like Aspen, Colorado and in Utah (where I just bought my home) where real estate prices have remained stable. In fact, just since I started the whole mortgage loan application process my new home has already increased in value. Instant equity the day I moved in!