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:
“The United States is just now the oldest country in the world, there always is an oldest country and she is it, it is she who is the mother of the twentieth century civilization. She began to feel herself as it just after the Civil War. And so it is a country the right age to have been born in and the wrong age to live in.”
—Gertrude Stein (1874–1946)
“I have ever deemed it fundamental for the United States never to take active part in the quarrels of Europe. Their political interests are entirely distinct from ours. Their mutual jealousies, their balance of power, their complicated alliances, their forms and principles of government, are all foreign to us. They are nations of eternal war.”
—Thomas Jefferson (1743–1826)
“In it he proves that all things are true and states how the truths of all contradictions may be reconciled physically, such as for example that white is black and black is white; that one can be and not be at the same time; that there can be hills without valleys; that nothingness is something and that everything, which is, is not. But take note that he proves all these unheard-of paradoxes without any fallacious or sophistical reasoning.”
—Savinien Cyrano De Bergerac (1619–1655)
“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)
“When General Motors has to go to the bathroom ten times a day, the whole country’s ready to let go. You heard of that market crash in ‘29? I predicted that.... I was nursing a director of General Motors. Kidney ailment, they said; nerves, I said. Then I asked myself, “What’s General Motors got to be nervous about?” “Overproduction,” I says. “Collapse.””
—John Michael Hayes (b. 1919)
“Shakespeare, with an improved education and in a more enlightened age, might easily have attained the purity and correction of Racine; but nothing leads one to suppose that Racine in a barbarous age would have attained the grandeur, force and nature of Shakespeare.”
—Horace Walpole (1717–1797)