Is the U.S. in another housing bubble?
The average U.S. house price is the highest it’s ever been – even higher than during the peak of the subprime mortgage crisis . House prices experienced a 19.1% jumped between 2020 and 2021, the largest single year increase since 1992. These worrying statistics have economists and the public questioning ‘Are we in another Bubble?’. Source: National Home Price Index There were two clear spikes in housing prices: one in the years leading up to the 2008 financial crisis, and an even more dramatic rise since the onset of the pandemic. The shift to working at home due to COVID-19 heavily influenced an increase in house prices and demand . In 2020, similar to the financial crisis of 2008, quantitative easing was proposed and the federal funds rate in the United States was sharply reduced to 0.05% in April. In 2020 , U.S. household debt totalled $14.6 trillion , the largest type being mortgage debt, nearly hitting the peak of the 2008 financial crisis. Compared to the early 2000s, mortg
