Many still remember the early 2000s, when the housing boom then and its frivolities contributed to the crash in 2008. According to a report from finance.yahoo.com, there are existing factors present then that contributed to its ultimate crash.
Two factors have come up: the first being many new debtors were able to obtain mortgages on their homes, and the second factor is the little amount as collateral put up to obtain these mortgages. When these two forces converge, what results is a leveraged housing market.
According to a report from businessinsider.com, these factors are not too prevalent nowadays. The lesser leverage would be the game changer between the current housing market and the possibility of a housing bubble. This reportedly lessens the possibility of a similar or same result back in 2008.
This was best discussed by Bank of America Merrill-Lynch economist Michelle Meyer in her recent advisory to clients. According to Meyer, "[The ratio] shows that 44 percent of real estate wealth is made up of mortgage debt. This is nearly back to the pre- bubble crisis and compares to a peak of 63 percent of 2Q09 (Chart 7). A lower aggregate loan-to-value ratio suggests the real estate market should be more susceptible to shocks in the future."
On another note, as reported on news.goldseek.com, there is indeed a housing bubble, contrary to what others may say. The clear indication of the said bubble is reportedly the fact that the median price of existing homes jumped by 41 percent since 2012. The price rise though is not supported by volume, and when the supply is used, there would be no volume to support the price, leading to a price bubble collapse.
The report added that as the Fed continues to lower the rates and the government continues to purchase mortgages, the ultimate end is a repeat of what had happened in 2008, whether its intended or not.