As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?
More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.
What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?
Housing is not a bubble. Our current situation is extremely different from 2008. In 2008, banks were giving out loans to people who were clearly incapable of paying them back, and then selling bonds full of those loans at the same price as bonds that were full of good loans that were much more likely to be paid back... basically there was massive fraud going on. Furthermore, stocks were more expensive then ps-ratio-wise.
Housing prices will be going down soon, but not because they are a bubble... because interest rates are rising and the incoming waves of potential buyers are knee-deep in student debt. This does not mean housing will crash, but rather it means that prices will slowly decline.