The United states has been growing at a healthy pace during the 90s and also till the year 2007. The growth during those years was primarily driven by increase in real estate prices across cities which helped people to invest more in further real estate assets at high prices.
But from the end of 2007, people saw the saturation in real estate prices hitting them hard, and they started to move away from investing in the sector. That coupled with a general slow down in the US economy led to unexpected increase in the supply of real estate assets across US cities.
This resulted in the sub-prime crisis blowing off and Lehman Bros collapse followed. The entire US real estate region has so far seen a price correction of anything between 10% to 30%. Experts with decades of experience in the sector fear that the worst for the sector and the US economy may be round the corner.
The unemployment is also slowly inching up in US which in turn is affecting the consumer spending across sectors. Nothing seems to be going right for the US real estate sector for the time being.