Imagine a world in which housing prices could never form a bubble-->nothing to worry about.
Homes required a 20% down payment and fully documented, 30-year fixed loans to make sure each new homeowner did not get him or herself into trouble, if at all possible. Mortgage interest rates were not manipulated by government intervention, and remained neat their long-term (~40 year) average of 8.38% (LINK). In this world, it would be very difficult to create a housing bubble.
Imagine an industry in which financial professionals were there to protect you and ensure, to the best of their ability, that you had a solid plan, one you could count on for your future. One that MINIMIZED the risk of financial loss and tragedy... .
Average household income: $65,677 yr (LINK)
Loan Term: 30 year, 4.00% fixed (LINK)
Also, what if interest rates normalized and were 8.38%, the national long term average from May 1976 to 2015 (LINK)?
Why is it, then, that everyone thinks (again) that "it's different this time"? In fact, it's exactly the same, including the fact that everyone is "absolute and resolute" in their belief that house prices always go up and could never experience another 2007-2010 type crash--not ever again[!].