The Real Deal Miami

CNBC reviews the decade in housing

December 23, 2009 02:44PM


As the aughts draw to a close, CNBC‘s Diana Olick took a look back at this tumultuous decade in housing. At the beginning of the millennium, things in residential real estate were quite different. The rate of loans past due and in foreclosure was 6.5 percent in 2000, compared with a rate of 14.41 percent in this year’s third quarter. Between 2000 and 2005, home sales jumped 34 percent as Americans took advantage of affordability and easy-to-obtain financing. Investors also grew to distrust the stock market in the aftermath of Sept. 11, 2001, and sought safe replacements in real estate. Moving forward, the forces that fueled the bubble could still be at work, said Robert Shiller, co-founder of the Case-Shiller home price index. “There’s definitely a danger that this bubble could be repeated” in the next decade, he said.