“Why aren’t home prices in a bubble just like 2007?”
A good question with an easy answer.
Houses were in oversupply in 2007 and people were losing their jobs. Interest rates were higher, making homes less affordable. Consumer confidence was much lower.
Now, houses are in undersupply, plenty of jobs are available for those willing to work, mortgage rates are much lower and cash held by consumers is much higher.
Also a large amount of used homes are being purchased by investors, large and small, because money is cheap and they expect hard assets to be inflation protection.