Bubble in US house prices collapsed
The bubble in US house prices—which had seen house prices grow at an anualized rate of 8% between 1998 and 2006—collapsed in 2006/07 as the supply of easy credit began to dry up.


US Real Home Price Index 1900 to 2007

Source: Robert Shiller (via Sequoia Capital)
CONTEXT(Help)
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The Global Financial Crisis »The Global Financial Crisis
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Immediate triggers of the financial crisis? »Immediate triggers of the financial crisis?
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Bubble in US house prices collapsed
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Household debt service ratio rose steeply »Household debt service ratio rose steeply
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Personal savings rate evaporated »Personal savings rate evaporated
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Demographic changes as baby boomers move to retirement »Demographic changes as baby boomers move to retirement
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Large high risk loans predicated on rising house prices »Large high risk loans predicated on rising house prices
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Mortgage equity withdrawls no longer self sustainable »Mortgage equity withdrawls no longer self sustainable
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Vicious circle once the collapse gets underway »Vicious circle once the collapse gets underway
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House price bubble in the US »House price bubble in the US
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