Home Prices Stabilize as Housing Market Follows 1980s Pattern, Not 2008 Crash

Bank of America economists say housing market more like 1980s than 2008 crash
Builders not overdeveloping like pre-2008, buyers not overleveraging
Inflation high like early 1980s, Fed raising rates hurting housing
Mortgage rates doubled from 3% in 2022 like 9% to 18% in 1981
Home prices surged then flattened in 1979-82, similar to 2021-2022
Existing home sales dropped 54% peak to trough then, 40% so far now
Leverage not as concerning now with lower debt to income ratio
Big headwinds ahead are low inventory, high prices, labor shortages
Only rate cuts can improve affordability and stabilize housing market