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The 2000s United States housing bubble or house price boom or 2000s housing cycle [2] was a sharp run up and subsequent collapse of house asset prices affecting over half of the U.S. states. In many regions a real estate bubble, it was the impetus for the subprime mortgage crisis.
A housing bubble (or housing price bubble) is one of several types of asset price bubbles which periodically occur in the market. The basic concept of a housing bubble is the same as for other asset bubbles, consisting of two main phases. First there is a period where house prices increase dramatically, driven more and more by speculation.
In areas of the United States believed to have a housing bubble, price increases have far exceeded the 50% that might be explained by the cost of borrowing using ARMs. For example, in San Diego area, average mortgage payments grew 50% between 2001 and 2004.
And housing starts have still not recovered from the bursting of the housing bubble in the mid-2000s. Divide between haves and have-nots. The forecast for a “stuck” housing market cuts both ways.
A housing bubble can cause property prices to soar to unrealistic levels, leading to an eventual crash that can have detrimental effects on homeowners and the economy as a whole. In 2008, this ...
America’s gummed-up housing market is a $45 trillion mess — a big old knot of economic forces smashing into a century’s worth of cultural conditioning about the value of homeownership.
1968: As part of the Housing and Urban Development Act of 1968, the Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise (GSE) which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market.
In 2008, a housing bubble that had been inflating since 2004 inhaled its last breath and finally popped -- and what a pop it was. The financial markets lost 30% of their value as foreclosure signs...