There are numerous similarities between the Bubble 1.0 era and the past several years. This essay reviews Bubble 1.0 and the present and draws on key parallels that drove house prices that few ever point out (i.e., this time demand wasn't a feature of surging house prices; this time houses have been a forced savings account, which are key differentiators).
Even if house prices in the CS 20 drop 10% to 20%, I am not sure what that means in the context of record untapped home equity (as opposed to last bubble when everybody could extract every dollar of equity all the way up), a solid employment and wage backdrop, rates that have likely topped and technology that will blow open the buy-box in the next couple of years to include those 10s of millions with irregular income or artificially low credit scores.
I do, however, have a better idea on what this means to pure-play housing, finance, related-retail, appliance, etc, which I will be focusing on in 2019 along with my favorite tech, fintech and advanced credit companies aiming to add liquidity to the housing market and dive into Opportunity Zone ideas.
There are some great trades to be had.