Rolf Englund IntCom internetional
Hillary Clinton is one of several prominent figures to warn that the US “might be drifting into a Japanese-like situation”.
In the 10 years before the 2006 peak, US house prices in the 20 biggest cities rose almost 200 per cent.
In the 10 years prior to Japan’s 1991 bust, commercial land prices in its six biggest cities rose almost 500 per cent.
The bust not only erased all of that gain but also brought Japanese prices down to 25 per cent below 1981 levels.
Most forecasters think US housing prices will drop a third from their peak, leaving them well above pre-boom levels.