[nick_kline]

It's different this time ;-) In 2008 there was a lot of new construction that wasn't yet sold, and people bought houses out in the boonies sometimes, but they got loans they could never pay for - expecting the house would appreciate and they justify a new loan, or sell it soon for more money. Prices fell and they couldn't get a new loan or pay their old loan.

Today there is a housing shortage, & that's driving up prices. I'm sure there are some people hoping to flip their houses, but all I read is there is much more stringent mortgage requirements than before and in hot markets at least there are multiple offers. So it's similar in a vague way, but it's much different in it's the housing shortage that is driving a lot of the price increase today. Still, eventually I expect the shortage to ease, builders will make more houses, so that should lower the pressure or lower prices, eventually, at least somewhat.

If people aren't buying so many houses they can't afford, then shouldn't the problem of mass loans going back to the bank be avoided?