Perhaps by real estate, but more by the mortgage bankers giving government guaranteed loans to people who couldn't possibly repay them.
Yeah... But, let's be truthful.... The realtors were on the front line of the crash, almost surely knew the clients could NOT afford the property they were selling /showing.... They then steered them toward a friend who just happened to be the banker, and another friend who was a loan processer, and another friend who was a crooked appraiser... It was a perfect storm being driven by greedy professionals and they got drunk on the massive amount of loan fees,surveys, banks got points and the realtors laughed all the way to the same bank with excessive commissions to deposit...
For instance, here in Jackson, which is on the highest end of housing costs. During the heyday 2004 -2008, anyone with a pulse was hired as a realtor... They would list a property in the morning, by lunch several buyers would contact them.. They would literally pick the best and richest buyer, take them to lunch , feed them a 20 dollar sandwich and a 15 dollar bottle of wine .. They would look at the property, before 3 PM the client had signed a contract.... Also keep in mind housing here is /was insanely priced, starter homes were over a million, average sale price was 3.6 million
So, in less then 6 hours they went from a "new" listing.... to a for sure commission of 200,000.00, and all their banker ,appraiser, survey, loan processor friends shared the transfer costs of 60,000-100,000... They too laughed all the way to their friends bank to make a deposit.. It was as close to perpetual motion as one can get.....
Then................... The sun came up the next day and they did it all over again...
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