Third repeat of this post in this thread.
Very simple economic rules at play here.
When you have a lot of something, an oversupply, and not much demand, the price goes down.
When you have a shortage of something, a reduced supply, and growing demand, the price goes up.
Right now we have a very short supply of housing and an increasing demand. So what did you expect housing prices to do?
What would you do if 15 couples were at your open house in a bidding war, offering more and more ridiculous amounts of money for your home? Stop them? Oh, no, I certainly cannot accept more than $150,000. No, oh, no, please? $475,000? No, really. What? You want to offer $525? No, just $150. That is all. $530? That's ridiculous. You, there. What are you saying? $545? For my house? But it is only worth $150! You see, my father built it in 1965 and . . . what? $560? Seriously? No, I couldn't. $150 is the price.
LOL! You would take the $560. Of course.
Supply and demand in one easy chart.
It is not hard to figure out why prices are what they are.
Yet every time I see a new development being proposed, everybody is down there at the local government protesting any building, NO, Not here! No more!
Well, you can't have it both ways.
We can pump oil, drill baby, drill, and drive the price down.
We can build, build, build, and lower the price of housing.
Or we can have a housing shortage and wonder why the price is high.
Housing starts have never recovered from the Great Recession