The chart above also displays inflation-adjusted house prices, using the Federal Housing Finance Agency house price index. After several decades of relative stability in real home prices (index stable around 280) and homeownership rates (between 64-65%) between 1975 and 1995, both series rose over the next decade to unprecedented record-high levels. By 2004, the homeownership rate had risen to 69.2% from 64% in 1994, and real home prices appreciated by more than 50% between 1996 and 2006.
That huge run-up in home prices created an unsustainable real estate bubble that started crashing in 2007, leading to a 22% drop in home prices through the first half of this year and bringing real home prices back to their 2001 levels. Likewise, the unsustainable “homeownership bubble” started crashing in 2007 and homeownership rates are now below 66% for the first time since the late 1990s.
That huge run-up in home prices created an unsustainable real estate bubble that started crashing in 2007, leading to a 22% drop in home prices through the first half of this year and bringing real home prices back to their 2001 levels. Likewise, the unsustainable “homeownership bubble” started crashing in 2007 and homeownership rates are now below 66% for the first time since the late 1990s.
Read more here at The Enterprise Blog.
Post Title
→The "Homeownership Bubble" is Still Deflating
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→https://manufacturing-holdings.blogspot.com/2011/07/bubble-is-still-deflating.html
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