Why did Americans believe they could borrow their way to better times and continuously higher standards of living? The answer lies in one of the most expensive financial myths ever floated off a tongue: House prices do not fall in value.
In real terms, house prices in the 113 years leading up to 2003 had only appreciated at an annualized rate of 0.4%. However, in the three short years from 2003 to 2006, the index appreciated 32.5%.
Note: housing bubble