The effect on homeowners of the housing bubble and crash is pretty well reported.
But what about the big picture?
In 2006, the housing market crashed, and from 2007 to 2009, the value of real estate owned by households fell by nearly $6 trillion.
The economy in general hasn’t been doing too well since then – this is the longest it's ever taken to recover from a recession, if you want to call it a recovery – and there doesn’t seem to be any big boosts on the horizon.
Just last week mortgage rates hit a six-month low of 4.2%.
Job growth continues to disappoint, affordability remains an issue and sales of almost all single-family home types are weak. Mortgage applications are slow. Wage stagnation remains a challenge for both housing and for the economy in general.
Here’s a good look at how we got here, as seen in these four maps provided by VisualizingEconomics.
First the price stagnation:
Next, post bust housing prices.
Next, the overall change from 2003 to 2013 of housing prices:
Finally, a look at the recovery in prices from the start of 2012 through the end of 2013.