Market correction predictions United States housing market correction

comparison percentage change of case-shiller home price index housing correction beginning in 2006 (red) , correction (blue) beginning in 1989, comparing monthly csi values peak value seen prior first declining month way through downturn , full recovery of home prices.

based on historic trends in valuations of u.s. housing, many economists , business writers predicted market correction, ranging few percentage points, 50% or more peak values in markets, and, although cooling did not affect areas of united states, warned correction , nasty , severe .

chief economist mark zandi of research firm moody s economy.com predicted crash of double-digit depreciation in u.s. cities 2007–2009. dean baker of center economic , policy research first economist identify housing bubble, in report in summer of 2002. investor peter schiff acquired fame in series of tv appearances opposed multitude of financial experts , claimed bust come.

the housing bubble partly subsidized government-sponsored entities fannie mae , freddie mac , federal policies intended make housing affordable all.