Around what year or time did the recent housing boom start?

Question

Around what year or time did the recent housing boom start? I know it is garbage now, but before then it was really booming. Looking for a year, maybe a month or estimated timeframe

I'm trying to correlate the results of a business with the housing market. Thanks

Answer 1

In a lot of areas the boom had started by ~2000. As 2000 progressed and the stock market started to decline investors pulled cash out of the stock market and were looking for other places to invest that cash. Mortgage backed securities became more popular at that time. All of this money looking for a place to go fueled lenders desires to get people to take mortgages. In order to generate more business many lenders (not all, many) lowered their credit standards to appeal to a wider audience. This spurred demand for housing and started to drive up prices. It became a cycle. More people saw prices going up and were concerned about being left out or behind and jumped into the market which drove up demand for housing and therefore prices.

Continue on into 2001, the makings of the boom were already in place and in swing in some real estate markets. 9-11 caused a brief confidence crisis and the fed lowered interest rates to keep the economy humming. This also contributed to the boom by keeping the supply of capital cheap, allowing people to borrow more and more for housing at historically low interest rate levels.

These two factors really intensified in 00/01, so I'd say that was the real start of the last real estate boom!

hope that helped

Answer 2

Real Estate runs in 17 year cycles.

The last bottom was 1988

From 1988-2000 12 years the real estate market did basically nothing. Going up 2-3% per year.

AFTER 9/11 Greenspan (Chairman of the Federal Reserve) panicked and lowered rates to 1%

The banks were "Stuck on Stupid" Just like the savings and loan in 1988 and loaned money to buy homes to people who could not afford them.

1988-2000 12 years doing nothing.

2001-2005 4 years of big, big price appreciation.

When is the next up cycle in Real Estate?

2005+12 years=2017.

Start accumulating properties around that year.

Look for the banks to go back to "Stuck on Stupid" to fuel the next wave of homebuyer's

When the lending standards go to "Whomever can fog a mirror can get a loan" you know the boom is just around the corner.

Hope this helps.

Answer 3

well in 2004 I went back to FL and was going to buy a condo and things were booming then. it wasn't long after that things hit the fan and "investors" were left with a lot of properties and no one to buy them. this is usually cyclical....the same thing happened in Cali not 10 years before that. prices evened out and ppl are desperate to sell there. not so here in the DC area...things are still unattainable and overpriced.

Answer 4

The Socialist Myth of the Greedy Banker

http://iakal.wordpress.com/2014/02/24/the-socialist-myth-of-the-greedy-banker-the-gold-standard/

The Socialist Myth of Economic Monopoly

http://iakal.wordpress.com/2014/03/12/the-socialist-myth-of-economic-monopoly/