Market Correction Predictions
Based on the historic trends in valuations of U.S. housing, many economists and business writers have predicted a market correction, ranging from a few percentage points, to 50% or more from peak values in some markets, and, although this cooling has not affected all areas of the U.S., some have warned that it could and that the correction would be "nasty" and "severe".
Chief economist Mark Zandi of the research firm Moody's Economy.com predicted a "crash" of double-digit depreciation in some U.S. cities by 2007–2009. Dean Baker of the Center for Economic and Policy Research was the first economist to identify the housing bubble, in a report in the summer of 2002.
The housing bubble was partly subsidized by government-sponsored entities like Fannie Mae and Freddie Mac and federal policies intended to making housing affordable for all.
Read more about this topic: United States Housing Market Correction
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