Is The Housing Market Going To Crash Again?

  • I am not as concerned (initially)with a housing crash as much as I am a recession which would then lead to the housing market constricting(along with many other industries).

    Tony Miller May 17, 2016 5:25 am Reply
  • Ryan, Ryan, Ryan…. how we forget all history. I hear this a lot “the loans are so good these days the market isn’t going to crash, I mean look at the liar loans we did back in the day…” We’ll what people seem to forget is that from 1970 to 2000 we didn’t have the liar loans we had 28/33 max debt to income ratios, we had more down-payment requirements and stringent underwriting standards. Our underwriting standards now are 43% DTI and in some cases automated approvals coming in at 50+ DTI and many programs with less down-payment required than from 1970-2000… so although we have tightend up credit standards from “back in the day” they still are not tighter than they used to be for many years when we still had market ups and downs. I have no comment if the housing crash is coming we also still have a ton of demand Chinese money coming in as well. The crash will probably come when the scare and panic comes into the market and not some mechanics of the economic system. So we will see, but the argument that the loans are better is not a good one for the housing market prediction.

    Ed May 17, 2016 6:39 am Reply
  • I think the real estate cycle model shown is flawed in one important respect “COMPRESSION” all forces that react on housing is faster and quicker to assemble today as never before, and the peaks and valleys of the chart will compress(get closer together)and be unpredictable based on the history of the housing market. We have never had wealth leaving this country as now along with jobs we are in an economic cycle as never experienced before; we have to reverse this trend and attract capital and jobs to this country to sustained upward growth and for that matter stop the exit of capital leaving this country.

    william jerry sims May 17, 2016 7:11 am Reply
  • While its true that last time around tons of BUYERS got loans to buy homes with lax underwriting standards, little income or no income verification and creative 100% or 100%+ financing and these loans were then spun off to unsuspecting investors who bought them. This Time Around; The type of EXTREMELY and some might argue “Artificially” low interest rates for such a prolong period of time that the FED has fostered has contributed to more and more folks taking on more and more debt to by More and More House!

    Michael Morrongiello May 17, 2016 11:20 am Reply

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