Will the subprime mortgage crisis in the United States lead to a decline in house prices?

The subprime mortgage crisis in the United States will lead to a decline in house prices. The subprime mortgage crisis in the United States is an example. When house prices fall and banks collapse across the board, the final tax increase will be passed on to buyers, which is undoubtedly worse for those who just need no housing. A large number of houses will be thrown into the market to avoid taxes, which is extremely bad for real estate recovery.

Asia's housing price changes can only be seen in 50 years, and the United States can look forward to 100 years. As an authority on the global building housing price index, Robert Shiller believes that in the history from 1890 to 2007, the real housing price index of the United States (excluding inflation, technological progress of new houses and other factors, more like the land price index) basically consolidated between 100 and 130 (that is, relative to 130). Of course, if we look at the changes in the total residential price, it will definitely continue to rise. According to the U.S. Census Bureau, the median housing price in the United States rose from $2,938 at 1.940 to $260,200 in 2008. This includes factors such as large apartment, inflation and technological progress.

In the United States, there have only been two major changes in real estate nationwide: the first time was from pre-World War I to the end of World War II (19 14 to 1945), and the overall housing price was weak, although it rebounded in the mid-1920s (1923 to1). The second time, since 1992, American house prices have started a round of sustained growth for more than ten years, which is rare in history. Especially after 2000, the real estate market prospered, and house prices rose sharply. In 2006, the house price index was as high as 203, which was 6 1% higher than the point of 126 in 2000, and then continued to fall until 20 12 hit the bottom.

With the consolidation of the bottom of the American economy, the housing price index of the top ten cities in the United States has been fluctuating in a narrow range from the second half of 2009 to the first half of 20 12. It is noteworthy that since February 20 12, American house prices have continued to rise. By February of that year, the house price index was close to the second quarter level of 20 10. Moreover, since 20 12, housing sales and new construction in the United States have also improved simultaneously. It has been rising continuously since 20 13. In March 20 14, the annual growth rate of the house price index in the top ten cities in the United States was 12.6%, which was lower than that in March 20 13, but still higher than the 9.7% increase rate of the house price index in 70 large and medium-sized cities in China in February 20 13. By May this year, the year-on-year growth rate of house prices in 70 cities nationwide had dropped to 5.6%.

These data prove that the US property market has stepped out of the trough and become an important force driving economic growth. The impact of real estate on the American economy is exactly what we call "success is Xiao He, failure is me". Real estate is a pillar industry in China, which many people always think should not be, but it is also a pillar industry in many countries, including the United States.