This is quite the perfect looking chart, isn’t it? It’s moving up not quite at a 45 degree angle but it is consistently moving higher in the past 3.5 years and really since the market bottomed in late 2011. Home prices are still a bargain compared to many parts of the country and it’s still likely much cheaper for people to own their own homes rather than rent.
No one knows of course how long this will continue at this consistent pace. The crash of 2008-2010 is still WAY too fresh in a lot of peoples’ minds but the one thing I will note is that we don’t have the super risky mortgages that we had before. Can it pull back? I suspect it will but by how much and when is not something I can speculate on.