page_title: United States housing bubble
section_title: Notes
hierarchical_section_title: United States housing bubble / Notes
caption_attribution_description: English: Inventory of houses for sale in Phoenix, AZ from July 2005 through March 2006. As of 10 March 2006, well over 14,000 (nearly half) of these for-sale homes are vacant [1]. (Source of data: Arizona Regional Multiple Listing Service.) I, the creator of this plot based on data published by Arizona Regional Multiple Listing Service, release it to the public domain. Frothy 20:27, 29 June 2007 (UTC).
context_page_description: The United States housing bubble was a real estate bubble affecting over half of the U.S. states. It was the impetus for the subprime mortgage crisis. Housing prices peaked in early 2006, started to decline in 2006 and 2007, and reached new lows in 2012. On December 30, 2008, the Case–Shiller home price index reported its largest price drop in its history. The credit crisis resulting from the bursting of the housing bubble is an important cause of the Great Recession in the United States.
  Increased foreclosure rates in 2006–2007 among U.S. homeowners led to a crisis in August 2008 for the subprime, Alt-A, collateralized debt obligation, mortgage, credit, hedge fund, and foreign bank markets. In October 2007, the U.S. Secretary of the Treasury called the bursting housing bubble "the most significant risk to our economy".
  Any collapse of the U.S. housing bubble has a direct impact not only on home valuations, but mortgage markets, home builders, real estate, home supply retail outlets, Wall Street hedge funds held by large institutional investors, and foreign banks, increasing the risk of a nationwide recession.
context_section_description: Shiller, Robert (2005). Irrational Exuberance (2d ed.). Princeton University Press. ISBN 978-0-691-12335-6.
  "S&P CoreLogic Case-Shiller Home Price Indices - S&P Dow Jones Indices". standardandpoors.com. Retrieved October 5, 2017.
  Mantell, Ruth. "Home prices off record 18% in past year, Case-Schiller says". marketwatch.com. Retrieved April 29, 2009.
  Holt, Jeff. "A Summary of the Primary Causes of the Housing Bubble and the Resulting Credit Crisis: A Non-Technical Paper" (PDF). 2009, 8, 1, 120-129. The Journal of Business Inquiry. Archived from the original (PDF) on October 17, 2014. Retrieved February 15, 2013.
  "In Washington, big business and big money are writing the rules on trade ...". Bill Moyers Journal. June 29, 2007. PBS.
  "Housing woes take bigger toll on economy than expected: Paulson". AFP. October 17, 2007. Archived from the original on September 18, 2010.
  Laperriere, Andrew (April 10, 2006). "Housing Bubble Trouble: Have we been living beyond our means?". The Weekly Standard.
  Bajaj, Vikas (July 25, 2007). "Lender Sees Mortgage Woes for 'Good' Risks". The New York Times. Retrieved May 26, 2010.
  Roubini, Nouriel (August 23, 2006). "Recession will be nasty and deep, economist says". MarketWatch. This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices.
  "When mainstream analysts compare CDOs to 'subslime', 'toxic waste' and 'six-inch hooker heels' ..." RGE Monitor. June 27, 2007. Archived from the original on June 29, 2007.
  Solomon, Deborah (August 31, 2007). "Bush Moves to Aid Homeowners". The Wall Street Journal.
  Reuters. (2008). FACTBOX – U.S. government bailout tally tops 504 billion pounds.
  Wisconsin School of Business & The Lincoln Institute of Land Policy (2015). "Land Prices for 46 Metro Areas". Updated Quarterly.
  Tax Break May Have Helped Cause Housing Bubble, The New York Times, December 18, 2008
  Evans-Pritchard, Ambrose (March 23, 2006). "No mercy now, no bail-out later". The Daily Telegraph. London. Retrieved May 26, 2010. [T]he American housing boom is now the mother of all bubbles—in sheer volume, if not in degrees of speculative madness.
  Levenson, Eugenia (March 15, 2006). "Lowering the Boom? Speculators Gone Mild". Fortune. America was awash in a stark, raving frenzy that looked every bit as crazy as dot-com stocks.
  Poirier, John (March 19, 2007). "Top five US subprime lenders asked to testify-Dodd". Reuters. Retrieved March 17, 2008.
  "Intended federal funds rate, Change and level, 1990 to present".
  Shiller, Robert (June 20, 2005). "The Bubble's New Home". Barron's. The home-price bubble feels like the stock-market mania in the fall of 1999, just before the stock bubble burst in early 2000, with all the hype, herd investing and absolute confidence in the inevitability of continuing price appreciation. My blood ran slightly cold at a cocktail party the other night when a recent Yale Medical School graduate told me that she was buying a condo to live in Boston during her year-long internship, so that she could flip it for a profit next year. Tulipmania reigns. Plot of inflation-adjusted home price appreciation in several U.S. cities, 1990–2005:
  "Is A Housing Bubble About To Burst?". BusinessWeek. July 19, 2004. Archived from the original on March 4, 2008. Retrieved March 17, 2008.
  Shiller, Robert (June 20, 2005). "The Bubble's New Home". Barron's. Once stocks fell, real estate became the primary outlet for the speculative frenzy that the stock market had unleashed. Where else could plungers apply their newly acquired trading talents? The materialistic display of the big house also has become a salve to bruised egos of disappointed stock investors. These days, the only thing that comes close to real estate as a national obsession is poker.
  "DETECCIÓN DE BURBUJAS INMOBILIARIAS: EL CASO ESPAÑOL". eumed.net. Retrieved October 5, 2017.
  G.R. Putland (June 1, 2009). "From the subprime to the terrigenous: Recession begins at home". Land Values Research Group.
  "The end of Poland's house price boom". Global Property Guide. August 
caption: Inventory of houses for sale in Phoenix, AZ from July 2005 through March 2006. As of March 10, 2006, well over 14,000 (nearly half) of these for-sale homes were vacant. (Source: Arizona Regional Multiple Listing Service.)
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