The new Joint Economic Committee report on subprime is, aside from its policy moral, a great source document for facts about the housing bubble, illustrating some key facts about what happened, where, and when. I thought it might be interesting to readers if I gave you a few highlights, plus some useful pictures from other sources.
First, in case you don’t know just how anomalous, how at odds with historical experience, the runup of prices in recent years has been, here are real housing prices over time:
The overall rise in prices is, as I tried to explain more than 2 years ago, an average between modest rises in some areas and clearly bubbleicious increases in others:
The popping of the bubble has produced a big, big slump:
Delinquencies are already soaring to recession-type levels, even though we’re not in a recession (yet?):
And the delinquencies are worst on the loans made in the final bubble frenzy:
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