Housing's Shaky Upturn

You can't unwind the biggest asset bubble in history overnight—or even in a year.

The first wave of the housing crisis began when risky loans made to speculators and subprime borrowers started to go bad. The problems these loans caused are now mostly behind us, and the low end of the housing market is stabilizing. Among homes once selling for about $200,000, prices have fallen dramatically—in some cases 70% or more—and first-time homeowners are stepping in, resulting in rising sales and even bidding wars.

High-end woes

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Whitney Tilson
Contributing Editor, Kiplinger's Personal Finance