VICTORIAN property values have plummeted about $40 billion in the past six months.

VICTORIAN property values have plummeted about $40 billion in the past six months.

Melbourne’s median house price of $450,000 mid-2008 is now down to $427,500, according to estimates.

And house price expectations across Australia have sunk to an all-time low, a new report says.

Victoria’s $800 billion residential property market has dropped 5 per cent - or $40 billion - overall since July, according to BIS Shrapnel calculations prepared for the Herald Sun.

The trend has opened the door for potential borrowers desperate for cheaper housing.

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http://www.news.com.au/heraldsun/story/0,21985,24881569-5013926,00.html