A United States housing market correction is a market correction or "bubble bursting" of a United States housing bubble; the most recent began following a national home price peak first identified in July 2006. Because realty trades in illiquid markets relative to financial assets such as common stock, timely valuation lags true values from three months to a year. Certain markets, including San Diego and Detroit, peaked as early as November 2005.
A real estate bubble is a type of economic bubble that occurs periodically in local, regional, national or global real estate markets. A housing bubble is characterized by rapid increases in the valuations of real property such as housing until unsustainable levels are reached relative to incomes, price-to-rent ratios, and other economic indicators of affordability. This in turn is followed by a market correction in which decreases in home prices can result in many owners holding negative equity, a mortgage debt higher than the value of the property.
Read more about United States Housing Market Correction: Market Correction Predictions, Market Weakness, 2005–2006, Alt-A Mortgage Problems, Foreclosure Rates Increase, See Also, Further Reading, References and Notes
Famous quotes containing the words united states, united, states, housing, market and/or correction:
“In no other country in the world is the love of property keener or more alert than in the United States, and nowhere else does the majority display less inclination toward doctrines which in any way threaten the way property is owned.”
—Alexis de Tocqueville (1805–1859)
“Today’s difference between Russia and the United States is that in Russia everybody takes everybody else for a spy, and in the United States everybody takes everybody else for a criminal.”
—Friedrich Dürrenmatt (1921–1990)
“It may be said that the elegant Swann’s simplicity was but another, more refined form of vanity and that, like other Israelites, my parents’ old friend could present, one by one, the succession of states through which had passed his race, from the most naive snobbishness to the worst coarseness to the finest politeness.”
—Marcel Proust (1871–1922)
“We have been weakened in our resistance to the professional anti-Communists because we know in our hearts that our so-called democracy has excluded millions of citizens from a normal life and the normal American privileges of health, housing and education.”
—Agnes E. Meyer (1887–1970)
“The only reason to invest in the market is because you think you know something others don’t.”
—R. Foster Winans (b. 1948)
“There are always those who are willing to surrender local self-government and turn over their affairs to some national authority in exchange for a payment of money out of the Federal Treasury. Whenever they find some abuse needs correction in their neighborhood, instead of applying the remedy themselves they seek to have a tribunal sent on from Washington to discharge their duties for them, regardless of the fact that in accepting such supervision they are bartering away their freedom.”
—Calvin Coolidge (1872–1933)