MarketWatch columnist Michael Brush is starting to see some parallels to the 2005-07 housing bubble. Namely, "impossibly small houses selling for insanely high prices." But that's not all. Brush lists housing flipping, price appreciation, and quick mortgages as signs that the end is near. To test his theory, he went to Stephen Oliner of the American Enterprise Institute the Ziman Center for Real Estate at UCLA.
His take was not exactly encouraging. We’re actually a lot closer to potential housing-market problems than you might think. The reason? Easy credit is back.
The notion that you need to save a lot of money to buy a house is again being treated as so much “baloney,” said Oliner.
But, despite that warning, a re-run of 2008 is unlikely.
That’s because banks aren’t amplifying the problem via wholesale repackaging of home loans into risky investment instruments. At least not yet.