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2007 implies right before the 2008 recession where housing prices tanked. In 2007 people were panic buying houses because they thought that if they didn't buy
by ByteJockey 5y ago
2007 implies right before the 2008 recession where housing prices tanked.
In 2007 people were panic buying houses because they thought that if they didn't buy right now, they'd never be able to afford to buy a house.
- IAmGraydon 5y agoIt’s true…the market always seems to turn when you start seeing widespread sentiment that it will never turn.
- iknowSFR 5y agoThe article directly addresses this: “The last time U.S. housing saw such rampant price growth was in 2005, and the market corrected itself, infamously, in 2008. But the underlying reality today is different. Back then, a geyser of subprime adjustable-rate mortgages sputtered out as borrowers defaulted. (According to Bloomberg News, 60 percent of mortgages during the bubble years were adjustable rate; fewer than 0.1 percent of mortgages are now.) The current boom is better compared to a river, one fed by streams that have long been visible on the horizon: high demand, low supply and a dysfunctional economy in which wages are stagnant while restrictive zoning and poor public policy have turned housing into an artificially scarce commodity. Historically low 30-year fixed mortgage interest rates, hovering between 2.68 and 3.08 for the last year, are narrowing the riverbed, quickening the current.”
- nikanj 5y agoSo essentially "This time is different"?