HGTV ‘Flipping 101’ host on housing: We’re in ‘craziest market I’ve ever seen’

Tarek El Moussa says the housing market will 'peak' when entry-level buyers can't purchase a home

HGTV "Flipping 101" host Tarek El Moussa told FOX Business' Stuart Varney on  "Varney & Co." Thursday that the current housing market is the "craziest" he’s ever seen.

TAREK EL MOUSSA: I think once the affordability index disappears, meaning the entry-level buyers can't buy a home, I think we're going to see some changes. You know, I think the entry-level buyer, if they have to pay a million dollars as an entry-level home, I think I think we're going to start seeing the peak of the market. When is that going to happen? I have no idea. It might be a year from now. It might be three years from now, but we've just been in the craziest market I've ever seen. 

In my opinion, there will not be a crash, but there will be a correction, and it's different because people have skin in the game. They have equity in their homes. People in California bought a house in 2010 for $250,000. Today it’s worth $750,000. Back in 2007, and 2008 everybody had zero down loans and they refinanced 100 percent of the equity.