[quote=The-Shoveler]I don’t think we will get a crash, maybe a small decline or level off for a while.
It would take something external to the housing market to cause a crash IMO.
Housing market has been purged of weak hands already for the most part.[/quote]
IMHO, you don’t need weak hands to pop a bubble. All that’s needed is a change in perspective regarding a speculative asset. With all of the “investors” who’ve been piling into the housing market since 2008, you can be sure the speculative part of the bubble is already there. Raise interest rates, or have some other type of “investment” become the next new thing, and the housing market will fall on its face.
Too much speculation is what causes bubbles; the addition of easy credit just enables it to get into really dangerous territory. ZIRP means that money is cheap…and this money is most definitely finding its way into the housing market. Just because speculators aren’t using traditional mortgages doesn’t mean that they aren’t leveraging. I believe that they are, and more than most people think.
