The manic housing market of subprime loans in the mid 90’s created a housing boom…the housing bubble has finally burst leaving banks hanging with foreclosed homes and defaulted loans. In fact, there has been more than half a million homes entering foreclosure at an alarming rate in 2007. It worries me a bit because I would like to purchase a home within the next 5 years and am hoping that the market will recover because right now high interest rates, strict approvals and skyrocketing listing prices is a bit scary for a first-time home buyer. You can read more about the real estate bubble discussion over at the Housing Bubble Blog which features some nifty graphs and tons of resources and updates on the market.