oct 24, 2008 - US Housing Bubble

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Investopedia: Some experts believe that the bursting of the NASDAQ dot-com bubble led U.S. investors to pile into real estate due to the mistaken belief that real estate is a safer asset class. While U.S. house prices nearly doubled from 1996 to 2006, two-thirds of that increase occurred from 2002 to 2006, according to a report from the U.S. Bureau of Labor Statistics.11

 Even as house prices were increasing at a record pace, there were mounting signs of an unsustainable frenzy—rampant mortgage fraud, condo "flipping," houses being bought by sub-prime borrowers, etc.

U.S. housing prices peaked in 2006, and then commenced a slide that resulted in the average U.S. house losing one-third of its value by 2009.2 The U.S. housing boom and bust, and the ripple effects it had on mortgage-backed securities, resulted in a global economic contraction that was the biggest since the 1930s Depression.12 This period of the late 2000s thus came to be known as the Great Recession.

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