The Fed pushed a trillion or so of free money into mortgage markets. That is why house price went up. They have stopped. Prices will likely come down.
While there are likely supply constraints at the margins, the house price gains have been a result of the amount you can borrow at a certain monthly payment being abnormally high.
While there are likely supply constraints at the margins, the house price gains have been a result of the amount you can borrow at a certain monthly payment being abnormally high.