Short answer. In 2008, the U.S. sold 4.62 million homes — 4.13M existing (NAR) plus 485K new (Census). That was down 45% from the 2005 peak of 8.36M.
2008 was the year the U.S. housing market broke. Lehman Brothers failed in September; AIG, Fannie Mae, and Freddie Mac were placed in conservatorship that month; the first major wave of subprime mortgage resets had cascaded through the financial system.
2008 by the numbers
- New-home sales: 485,000 (-37.5% YoY)
- Existing-home sales: 4.13M (-26.9% YoY)
- Total: 4.62M (-28.8% YoY)
- Median existing-home price: $196,600 (-9.8% YoY)
- 30-year fixed mortgage: 6.03% annual average
What came next
Sales kept falling through 2011, when new-home sales hit their absolute trough at 306K and combined sales bottomed at 4.50M. Median existing prices kept falling through 2011, bottoming at $166,200. The recovery would not be visible in volume until 2013, and prices did not regain 2007 nominal levels until 2014.
Sources
U.S. Census Bureau Survey of Construction; National Association of Realtors Existing Home Sales report; Freddie Mac Primary Mortgage Market Survey; National Bureau of Economic Research Business Cycle Dating Committee.