Housing market peak in USA was reached in 2005.
In the second half of 2006, sales of old houses reached the lowest level during the 2 year period, while newly built homes' sales reached the lowest level in 2006.
In such situation, when prices remain the same, there are fewer buyers who want buy houses in current prices.
The results in housing market would be opposite if the prices of houses decrease so increasing the number of sales.
Real estate housing bubble may occur if prices of houses continue to increase.
This may be a consequence of financial reason when buyers can make a purchase of property with small incomes and low interest rate is small for long-term loans.
However, when such overheat occur, real estate prices begin to sink.
Thus, the interest rate in the USA was hold low that lead to increase in prices, especially in California and Florida.
In 2006, when the housing bubble has burst, many new home builders were left holding a lot of inventory, for bigger builders' situation has been quite better, because they can recover more easily.
Although in early 2010 prices of houses have started to climb, in some metro areas prices are still falling.
Today it is almost twice cheaper to rent a house or an apartment than to own, but there are more houses for sale, not for a rent.
In the nation there are fewer houses under construction and more for selling than the buyers demand, so there is a possibility of the new housing bubble.
During the 5 economic recession years, there was 10% increase in renter households and the biggest such growth was in the South.
Also, Florida home sellers are facing another problem.
Oil spill in May decreased the values of the houses that are near the gulf.