The United States Housing Bubble has affected more than half of the United States. Housing prices peaked in early 2006 and then it was followed by a massive fallout in 2006 and 2007 and has reached new lows this year.
Median home price in 2007 was $219,000 while now it’s down to only $154,700 in 2012 (Which is lowest since November 2001). Median house prices have been declining every year since the housing bubble burst, except for 2009 to 2010 as it remained the same. The beginning of the year showed no improvement, as conditions only got worse. 35% of the houses sold in January 2012 were sold at prices lower than their original mortgage amount.
Economists believe that the recovery phase is going on. National Association of Realtors Housing Affordability Index reported that the purchasing power of the middle class has doubled since July 2006. Houses and Condos have become affordable because of their low rates and very low mortgage prices. Jobs numbers are up sharply the last three months. There’s a good chance that prices might pick up again in 2013.
Infographic Created By: LegacyLendingGroup.com
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