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23
While many suggest the housing market
is headed for calamity and that another
housing bubble is forming, you think
otherwise. What are your reasons behind
the optimism? ere are several reasons
for my optimism here. If we look at what
caused the housing bubble to form in the first
place, such as excessive speculation and lax
lending policies, and compare that to today,
the differences are significant. Speculators are
far less prevalent in the market and lending
policies are far more onerous. Essentially, we
are actually over-qualified for the mortgage
debt that we are taking on so I just do not see
any bubble forming.
at said, I remain very concerned about
housing affordability in general. Home sales
are slowing across the entire U.S., even in
the face of relatively low inventory levels. e
principal reason behind this is an increasing
lack of affordability. is, unto itself, suggests
that home price growth must slow, and it will.
at, however, is a very different situation from
the one we saw back in 2008.
What do you love most about being an
economist? Well, economics is a social
science that I find fascinating as it does not
purely depend on raw data, rather it also has to
consider human nature. Simply put, my goal as
an economist is to better understand how the
world works and I absolutely love it!
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"If we look at what
caused the housing
bubble to form
in the first place,
such as excessive
speculation and
lax lending policies,
and compare
that to today, the
differences are
significant."
