Stop comparing the current housing market to 2008!

[Franco Li]

Real estate prices in certain areas are outrageous, and I'm hearing a lot of bears out there pining for a housing market crash before getting in. For all you bears, consider this: the real estate market in 2008 is less regulated than it is today, and barriers of entry as an investor or homeowner are higher than before. 

Today, we are experiencing considerably more financing requirements than the past, and lenders are learning to actually use metrics to gage a person's ability to service debt and the underlying collateral, rather than simply originate, recycling the loan, then walk away. 100% financing to individuals w/ 600 FICOs is laughable these days, but was a reality in the past. Today, getting a mortgage is a pain in the ***, and although there are non-traditional lenders who have filled the sub-prime space (thank you fellow members), another real estate crash seems very unlikely as foreclosures will probably never again be as dramatic than 2008. 

In saying that, there will likely be a market correction which may still effect housing prices. Easy money policies and cheap oil are overheating certain areas, and this tech fanaticism isn't helping - i.e. SnapChat valuation. But if you are a borrower questioning whether to buy now or to wait, consider other factors impacting the housing market and stop waiting to see another 2008 dip, because you'll probably be missing out on a lot of opportunities. 

Of course, I may be incredibly wrong HAHA. 

[George Smith]

Every month the financing requirements are loosening up. 8k-10k credits for 1st time home buyers, changing the way credit scores are calculated, 100% ltv in home equity lines of credit.  I'm  not sure where this ultimately leads but it's obvious things are changing.