Housing prices are surging to new records with no end in sight. They're being fueled by historically low interest rates -- but also investors and economists' belief that the housing market has a unique ability to support runaway prices.
That's the current state of America's housing market, but it could also describe the US housing bubble that inflated from 2004 through early 2007, before prices crashed and wreaked havoc on the economy and the global financial system. That led to the Great Recession, the biggest body blow that the US economy has suffered since the Great Depression. It produced massive, prolonged unemployment and the greatest destruction of household wealth in the nation's history.
Most economists and investors aren't focused on the housing market right now. Their attention is on other factors dogging the economy, such as a labor shortage, decades-high inflation, supply chain disruptions and of course the ongoing pandemic, which has been at least partly the cause of all of those problems.