I really think a big part of this is the QE/low interest rates the Fed used to dig us out of the hole. Everything seems inflated, from stocks to housing prices,

I really think a big part of this is the QE/low interest rates the Fed used to dig us out of the hole. Everything seems inflated, from stocks to housing prices, because borrowing is so cheap and you can over-leverage yourself quite easily. Anecdotal story: I live in a decent but not super nice part of Seattle and we had a house a few blocks away sell for 750k, which seems insane as everything else in the area goes for 400-500k and historically has basically been the ghetto. I could not imagine trying to get into this market, I would be living 6 miles down the road. Will be interesting to see how prices are impacted once the fed raises rates. Borrowing will be more expensive and should have a depressing effect on home prices.