|
|
.
.
Prior Bubbles and Busts
- The Florida Real Estate mania of the 1920's:
In less than 4 years, Florida property more than quadrupled it's value.
By 1925 the foundation began to crumble. Property was so expensive
that no new investors could get into the market. Home owners began
to panic and an avalanche of properties flooded the market.
Thousands of homeowners & investors were left holding the bag and
eventually had to file bankruptcy.
Read more about the
1920's Florida Real
Estate Crash.
- 1929 Stock Market Crash: The Dow
Jones rocketed from 60 to 400 from 1920 - 1929. Thousands of
millionaires were created almost overnight. Stocks were seen as a
sure thing and as something that always went up. The Fed finally
stepped in and by 1929 has raised interest rates several times. Finally
something snapped in the heart of share owners and panic selling began on
October 24th, 1929. Investors finally realized that the whole stock
market was an enormous bubble and that the stocks really were not worth
what people had been paying. By the end of October, the Dow Jones
sank from 400 to 145. Over $5 billion worth of stock shares had
tanked in a matter of days!
Read more about the
1929 Stock Market Crash
- 1987 Stock Market Crash: Billions
and billions of dollars vanished from the Stock Market in one day!
Almost every investor panicked and tried to sell off all of their shares
immediately which further drove stock prices down. Some wiped-out
stock owners even shot their own stock broker, even though the brokers had
no control over the market!
Read more about the
1987 Stock Market Crash
- The NASDAQ Bubble: By late 1999
the stock market had become overwhelmed with tech stocks. Many of
these were very new companies just getting started in the electronic
market place such as Pets.com. Stock prices for hundreds and
hundreds of new companies became worth billions!
In early 2000 the foundation crumbled! The NASDAQ crashed from 5,000
to 2,000. Hundreds of stocks became worthless and hit rock bottom.
The market continued to slide into 2002 and bottomed out around 800!
A recession ensued so the Fed started cutting rates to stop the bleeding.
The result of the Fed rate cuts and investors seeking something new to
pump money into is now the HOUSING BUBBLE!
Read more about the
NASDAQ Bubble
- Japan 14 year real estate decline:
Sparked by low interest rates, Japans average home value more
than doubled from the early 1980's to 1990 (sound
familiar?). Now, over 16 years
after prices peaked, home values are still declining and are nearing the
average price of
1980!!
Bubble
Life-Cycle
Cycle of the bursting housing bubble: Fear comes after denial!
Disclaimer and Fair Use Notice
2004 - 2007
Copyright Real Estate Decline .com © / All rights reserved
Disclaimer:
Observations made by the publisher of Real Estate Decline .com /
Home Price Bubble .com are made based on gathering articles and
data from various news sources. We are not responsible for
errors or omissions of data and news. All opinions made by
the publishers of this web site are not to be taken as
investment advise. We recommend everyone to use their own
judgment and gather facts regarding their real estate or other
financial affairs
Fair Use Notice:
This website contains copyrighted material the use
of which has not always been specifically authorized by the
copyright owner.
RealEstateDecline.com is making this material
available in our efforts to advance the understanding of
economic policy, educational, environmental, political, human
rights, democracy, scientific, and social justice issues, etc.
We believe that this constitutes a "fair use" of the copyrighted
material as provided for in section 107 of the US Copyright Law.
In accordance with Title 17 U.S.C. Section 107, the material on
this site is distributed without profit to those who have
expressed a prior interest in receiving the included information
for research and educational purposes. For more information go
to:
http://www.law.cornell.edu/uscode/17/107.shtml. If you wish
to use this copyrighted material for purposes of your own that
go beyond "fair use", you must obtain permission from the
copyright owner. If your copyrighted material appears on this
web site and you disagree with our assessment that it
constitutes "fair use", contact the site administrator
realestatedecline@usa.com |
|
Several U.S.
cities saw big home price dips in 1980's and 1990's housing busts!
- Los Angeles from 1990 to
1996 recorded over a 20% drop in median home sale prices.
- San Francisco from 1990 to
1994 prices fell by almost 10%.
These are examples of what happens in areas where people
continue to pay too much more than a homes true value. The chart below
includes several other Localized declines:
A tale of 5 U.S. cities in the 90's
real estate bust:
 |
