That is because there isn't credit like there was 10 or even 20 years ago when everyone got the credit they wanted to buy anything. Today credit costs a lot of money and less and less people can afford it.
I would say that location is the number one contributing factor to the value of property. Just the other day I was watching a program about an area in Germany that was built very well a few years ago but now is completely abandoned. The properties the least valuable in the entire country. The main reason is that there is no particular source of income within that area. There are no jobs and there is no community for people to desire to into that particular area. And so for you to be able to sell a property in that area is almost impossible. So location definitely plays a big big role in determining the value of property.
I think pretty much like you lovemwaf, who cares if the house is awesome if the location sucks? People want to live in certain areas because those areas are more convenient and those areas value the house and not the opposite.
