what really caused real estate to devalue nearly twice the previous amount in 2008? why people sold after? why they didn't wait for rebound?
was it mostly residential real estate or also commercial real estate? why?
- Anonymous1 month agoFavourite answer
If I remember right, Housing peaked in 2006 & reached an all time low in 2012. That began in housing & caused the collapse of several banks & that affected commercial estate loans. The blame was put on Sub-prime Mortgage loans. The Legislature made loans too easy. Up to 120% & no qualifying. During the panic (DOW dropped like an egg), people believed that values would never go up again & they owed more than the house was worth. They couldn't sell it to ease the loan, so they just left the house to be reclaimed by the bank. And, that was a mess, too. Often, several banks were involved creating the mortgage.
I bought a 5 bedroom new house for 1/2 the built value. Since then, my house has more than doubled in value. Some ones loss was my gain.
- A HunchLv 71 month ago
subprime loans and people taking equity out of their homes
with the great recession and 10% lost their jobs, they couldn't pay the loan.