You missed quite literally the largest problem in the housing market, and that is CHEAP MONEY! Why does this constantly get ignored? The math is simple. Buyers buy houses based on month to month costs, low interests rates drive down month to month costs, while sellers are looking for higher purchase prices. The lower interest rates will always lead to higher prices in this market dynamic because buyers can afford the “rents” as a result of the monthly prices dropping in the face of higher total cost!

Lower interest rates have also boosted the stock market to record highs, leaving people just starting to save for retirement in the dust. Cheap money is at the root of almost every economic problem this country is facing, meanwhile the entire “system” views it as the solution. It is the number one factor in inequality as well. The Federal Reserve, in an attempt to “save the economy” is gutting it from the inside out and all anyone cares about is that they are dead or out of office before the results of these actions come home to roost.