[aavotins]

Not US, but my wake-up call was my sister purchasing a small apartment for just 8000$ in 2002, in an industrial part of the city, surrounded by beat-up apartment houses and humungous acetone storage units. Whole place reeked of chemicals and the low price was justifiable, as "nobody wants to live there". She sold that very same flat for 80 000$ in 2006. Bought by a young couple, who's combined income was enough for 110% financing with no down payment and some extra cash left to spend. Suddenly a lot of people wanted to live there, because it was the only thing they could afford, or it was one of the last areas in the city with somewhat lower prices, thus giving way better profits when speculating. Then came 2008 and the rest is history. Taught me another lesson - never rely on savings too much, they dwindle way too fast