The stock market’s behavior could influence home-buying activity
By Jacob Passy | Marketwatch
As the stock market’s correction dredged up memories of 2007, some have begun to look for the bubble that might burst into the next recession. But housing experts say that real estate is unlikely to be the culprit this time around.
Prior to the 2008 financial crisis, the housing market heated up thanks to lax lending policies and over-eager homebuilders constructing properties no one bought. Homeownership rates and home prices hit all-time highs back then, before they came crashing down as many borrowers went into foreclosure. The rest, as they say, is history.