Is the market crash imminent
I see a lot of talk about the new crash coming. I'm just curious as to what this is based on. I got in this game in I think 2000. Back then, you could take the check ed Mcman sent for$ 6,000,000 to a lender, have no job and a 500 credit score and get about a million, albeit, at 10%. I should not have been loaned money, but I was. The other problem was, any decent renter could, and would qualify for their own mortgage. So the rent pool was mostly terrible.
So today, from what I can see, in my market, prices are around where they were in 2007-8, I really don't think they are as high as they were. I looked up the inflation rate, it said that there was about 10% total inflation over that same time frame. But, it looked like interest was more than double what it is now.
As far as I know, most retail buyers buy based more on terms, money down, payment per month, than the price.
So as an example, back in 2006, I may buy a home for $100,000 with 0 down, and a $900 monthly payment. Now the same home would be $100,000. With 3,500 down and $700 a month. The difference being now I need to prove i can actually pay for the house.
So based on this, the market is still down from the crash, based on payments. But my Wendy's jr bacon cheeseburger is up to $1.89, from $.99.
I'm not trying to be disrespectful, I'm trying to understand. Why will there be a crash in the near future?