The Real Estate Crash of 2008 vs. 2023: Why This Time is Different
youtu.be
The video discusses the differences between the real estate market in 2023 and the market crash of 2008. In 2008, millions of bad loans were given out to unqualified borrowers who provided inaccurate data on their income, leading to significant issues locally, nationally, and globally. However, laws and regulations have been put in place to prevent this from happening again, and the loans given out recently have been to qualified borrowers who are not at risk of defaulting. Additionally, investing in residential properties as an investment strategy and asset class was not a thing in 2005-2008, but now there is Wall Street money, hedge fund money, REITs, and a lot of investment in the single-family real estate market. This puts a floor on house prices, which means that the fallback and dip in values is not going to be as drastic. The entire nation, world, and social media are now paying attention to the housing market, whereas in 2007-2008, the crash caught people off guard. The speaker predicts that in the beginning of 2023, there will be a slight increase in interest rates, but not to the point of causing a crash or boom in the real estate market. They believe that house prices will remain steady or slightly fall, and in some markets, such as the Midwest, South, and Southeast, prices may start to go back up. The speaker emphasizes the importance of perspective and notes that the dip in prices in 2008-2010 was not as scary as it seemed at the time and that it only took a couple of years for house prices to recover. Finally, the speaker encourages people to buy good investments in real estate, as it is never a bad time to do so if done correctly.
The video discusses the differences between the real estate market in 2023 and the market crash of 2