Real Estate

Home affordability at 2007 bubble level but crash unlikely: Blackstone

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A major Wall Street firm is drawing a striking parallel to the housing bubble.

Blackstone’s Joe Zidle calls homes almost as unaffordable as the 2007 peak. Yet, he believes a crash is unlikely due to a major difference: Most owners aren’t using their homes like an ATM.

“That caused so many people to go upside down,” the firm’s chief investment strategist told CNBC’s “Fast Money” on Monday. “The value of what they owed was greater than the value of their home.”

Unlike the housing bust, Zidle adds home equity is at an all-time high and household balance sheets are strong.

“You haven’t had overbuilding. You haven’t had a drop in credit or lending standards,” he noted.

Blackstone is known for



Source cnbc.com

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