This is not '08 again. Record highs for home equity in '22

[Colton Hahn]

Hey BP fam,

Wanted to post something interesting for you guys to ponder that I saw on Linkedin. 

According to this Record Highs For Home Equity, we are seeing record highs for home equity. 

I talk to a lot of investors and some are talking about a housing market crash akin to '08 or compare the economic anxiety we see now to that time period.

Juxtapose the record highs in home equity now to 2008, when everyone and their dog was taking out highly leveraged loans tying up their assets in debt. 

This is not to say everything is hunky-dory, obviously not. 

But many people are flush with cash tied to their homes, and an even larger number of people locked in bottom of the barrel near zero interest rates on their homes.

Look forward to the discussion :)

[Henry Zhu]

Fed is doing whatever they can to kill the demand in order to cool off the inflation, and real estate is a big part of that inflation. Regardless of whether home price goes up or down, people that haven't bought a house with no equity are getting priced out and not able to afford the home they want to live in.

For investors, it will be harder for average investors to find a good deal. From my personal perspective, I am weighing my option of spending a lot of time looking for those deals and potentially come out empty if i analyze conservatively, versus I make my money elsewhere whre i can get better bang of my buck for my time. 

I am saving up some cash now and by using HELOC i might be able to scoop up some good deals next year when demand drops to a lower point.