US Housing Prices Surpass 2006 Bubble Peak as Analysts Warn of Crypto-Led Crash

U.S. real home prices have climbed back to levels rivaling the peak of the 2006 housing bubble, sparking concerns about systemic risk across financial markets—including cryptocurrencies. Inflation-adjusted home prices now exceed historical averages, trading at nearly double the long-term norm. The myth of invincible housing prices was shattered during the last crash, with real estate values dropping sharply and equities plunging between 2007 and 2009.

Market analyst Wimar.X warns that crypto markets could be the first to collapse in a repeat scenario. Housing downturns typically follow a predictable pattern: buyer retreat, inventory buildup, and price cuts. As real estate serves as collateral, banks tighten credit, triggering broader economic slowdowns. "In past cycles, bonds react first, stocks follow—and crypto crashes violently at the start," Wimar.X noted.

The specter of 2006 looms, with analysts projecting 2026 as the next inflection point. Cryptocurrencies, often seen as a liquidity bellwether, may face outsized volatility if credit conditions deteriorate.