United States housing market correction United States housing...

United States housing market correction

United States housing prices experienced a major market correction after the housing bubble that peaked in early 2006. Prices of real estate then adjusted downwards in late 2006, causing a loss of market liquidity and subprime defaults^[1]
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 and sustained increases in the price of real property, such as housing' usually due to some combination of over-confidence and emotion, fraud,^[2] the synthetic^[3] offloading of risk using mortgage-backed securities, the ability to repackage conforming debt ^[4] via government-sponsored enterprises, public and central bank policy^[5] availability of credit, and speculation. Housing bubbles tend to distort valuations upward relative to historic, sustainable, and statistical norms as described by economists Karl Case and Robert Shiller in their book, Irrational Exuberance.^[6] As early as 2003 Shiller questioned whether or not there was, "a bubble in the housing market"^[7] that might in the near future correct
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