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They're buying houses because those very same rock bottom interest rates means that there were almost no investment opportunities other than houses, cars, and stocks. Introduce rock bottom loan rates that allow more people to buy and boom you have sky rocketing home prices.
But sure it was lack of home building a decade ago that magically started affecting home prices across the country when those interest rates dropped.
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Obviously low interest rates play into it but there's more factors at play. I know it's a crazy idea to imagine a decade of record low house building could lead to limited supply and then increase demand.
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Well the interests rates are about to go back to what they were and housing prices weren't very high before the interest rate drop. It might be a good bet they'll go back to similar prices from before the current spike.
It would be insane to assign a ten year trend as the cause of a sudden major spike that has other explanations.
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