22 August 2023
The housing market is displaying alarming signs reminiscent of the catastrophic 2008 crash. Notable warning signs include:
1. **Unsustainable Price Spikes**: Rapid housing price surges may indicate a looming bubble. Current trends suggest that prices are plateauing after such increases.
2. **Risky Mortgage Practices**: An uptick in high-risk lending, such as subprime mortgages, echoes the irresponsible lending seen prior to the 2008 crash. These risky loans contributed significantly to the previous economic collapse.
3. **Rising Mortgage Rates**: As rates climb, demand for properties may decline, leading to a potential drop in home prices.
4. **Speculative Buying & Overbuilding**: An influx of speculative property buying and excessive construction can lead to market oversupply, pushing prices down.
5. **Economic Downturn**: A weakened economy, marked by reduced disposable income and job losses, hampers housing demand. Recent surveys show declining consumer confidence in the housing market.