What is the United States housing bubble? It is an economic bubble that is directly influenced by the United States housing market. It affects areas in the south, west, mid west, northeast, and central USA, all along our western, southern and eastern borders. The USA had a housing boom that peaked out in early 2006. Ever since then it has been on a major decline and hasn’t stopped falling yet. In 2008 there was the largest price drop in history on the price of homes. Foreclosures have also hit an all time high. The housing bubble in 2007 caused a terrible risk to the US economy. The US has seen some of the biggest crisis with the Alt-A, collateralized debt obligation, credit, hedge fund, foreign bank and mortgage markets.
This bursting bubble affects so much more than just the value of homes. It also has a direct impact on home builders, home supply retail stores, real estate and the Wall Street hedge funds as well as foreign banks. This has essentially put the US into a recession. The historical government bailouts and stimulus packages were spurred on by the declining housing market. It just made matters worse. Since then more homes have gone into foreclosure because of the high interest rates and the loss of jobs in the failing economy. People simply weren’t able to make their mortgage payments.
Experts predict that the market will rise back up but it will take time, years to recover. Until then people need to live within their means and practice restraint on spending practices to be able to continue to make their short term apartment payments on time.