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The US Housing Market and the Subprime Mortgage Crisis (A)
Introduction
In April 2007, the National Association of Realtors5 reported that existing-house sales in the United States (US) fell by 8.4 percent in March 2007, the biggest percentage decline in the previous 18 years. According to the report, sales fell by 10.9 percent in the Midwest, by 9.1 percent in the West, by 8.2 percent in the Northeast and by 6.2 percent in the South. This decline led to a fall in house prices. In March 2007, the average price of a house was US $217,000,6 a 0.3 percent decline from the price in March 2006. |
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“The number of homeowners trying to unload their properties is still so ridiculously high that pressures on prices will likely continue,” said Joel Naroff, Chief Economist at Naroff Economic Advisors7.
Introduction Contd...- Next Page>>
