As most of you know, the real estate bubble has burst and it is still believed that the real estate market has not yet bottomed out as of 2010. The main reason for the deflating of the housing bubble was due to the large number of homes that were constructed and sold in the years 1997 – 2005. The number of houses increased dramatically as about 609,000 new single-family homes were sold during the year 1990-1995. Yet and astronomical 1,283,000 new single-family homes were sold in 2005.
Then as the degree of economic activity, which was produced a housing bubble that kept expanding in 2001–2003, as well as other factors (such a subprime loans, overspending, Pay Day will come and has come, job layoffs, etc.), the real estate/housing bubble begin to deflate and burst.
The areas most affected by this real estate crash are the ones that experienced the most construction of new houses and the most gains in new people moving to the areas the fastest. Many suburbs saw huge gains in home sales and increased residents as people moved away from expensive, overcrowded metropolitan areas.
States that are most affected by the real estate bubble crash, which is considered an economic bubble, are Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, Ohio, Oregon, Rhode Island, Tennessee, Utah and Virginia.