Great topic - I'm reminded of Nouriel Roubini's prediction of the housing crash back in 07 (he recently said gold will crash to 1K, I don't think it'll go that far but what do I know?!). Indeed there are differences between today and back then in that anyone and everyone were getting mortgages since lenders didn't care about the borrower, they simply sold the mtgs to wall st who pooled them together to create leveraged debt products. New issuance in non agency mortgages is still very limited so the main culprit (in my opinion) of what drove the housing market bananas back then is absent today - we do have cheap money and quantitative easing which is helping drive the current home price appreciation - in my opinion, we won't nearly the same run up and we are still significantly below the peaks....having said that, most economists predict about 5% appreciation next yr and the yr after - and many feel that a correction may occur in the semi-near future (2-4yrs?) particularly as the Fed begins to step away from QE and raise rates...
I'm completely new to real estate investing and would really like to hear how some of you are setting yourselves for the next couple of years, particularly if you feel we'll continue to see appreciation for the next 2-3 years followed by a possible correction?
