In the mid-2000s, the real estate market seemed too good to be true. Historically low interest rates encouraged buyers to borrow money for their dream homes, as well as speculate on property by buying investment houses on the presumption prices would keep rising.Homeownership rates in the U.S. reached an all-time high in 2004, at almost 70 percent. That year alone, some states like California, Florida and Nevada saw house prices rise by more than 20 percent. “The worldwide rise in house prices is the biggest bubble in history,” warned The Economist in 2005, “Prepare for the economic pain when it pops.”And pop it did. Alarmed by spiraling property prices, the Federal Reserve hiked rates back up, which left many borrowers in the lurch. By 2005, the property market was beginning to wobble, thanks to increased foreclosures and falling prices. In 2007, over 1.2 million foreclosures were filed, up 42 percent from 2005.That was when the housing crisis became headline news, as over 25 subprime lenders went bankrupt or put themselves up for sale. The crisis was so seismic that it became a major factor in the start of the 2008 global financial crisis.What do the country’s real estate markets look… Read full this story
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Which States Have Seen House Prices Rise Since the Real Estate Bubble Burst? have 335 words, post on www.newsweek.com at November 5, 2018. This is cached page on Gatofuns. If you want remove this page, please contact us.