Looks like the market may have gotten ahead of the real-world economy – particularly with regards to removal of huge number of jobs from the BLS job count:
U.S. Housing Market Value Hits $55.1 Trillion – Zillow Research
One driver of higher home prices is the elephant in the room – massive inflation caused by money pumping after public health shut down much of the nation’s economy. Homes tend to be, on average, a hedge against inflation.
Inflation is the devaluing of the dollar. As each dollar has less value in the future, it then takes more dollars to equate to the old value.
If $1 in 2000 can buy the equivalent of 50 cents in 2020, then real things – like homes – will cost $2 (because each $ in 2020 is only worth 50 cents). Thus, home prices “go up” in dollar terms.
