The 2008 housing bubble was a devastating blow to the economy, ultimately deepening the recession. Although experts agree it is best to avoid another housing crash, they appear divided regarding whether the recent growth in the U.S. housing market is headed for another burst bubble. Modest home value growth leads many experts to believe that another housing bubble would not occur until at least September of 2019, if at all. Other experts believe residents—particularly millennials—being priced out of home ownership is sure to put the market into a crisis.
Several experts believe larger metropolitan markets are the most at risk of experiencing a burst housing bubble, with the most vulnerable markets being San Francisco, Boston, and Los Angeles. However, expert opinion is divided on this and many experts caution home buyers to consider other factors that contributed to the 2008 housing crash may not be currently at play. These factors include predatory lending, irresponsible or uninformed borrowing, and speculation. The lack of poor lending and borrowing practices may insulate the national housing market from some of the risk factors experienced in the more vulnerable markets.
This conflicting information has buyers and sellers feeling uncertain about the future, but more ethical real estate practices mean the future need not be so bleak.