House prices don't really go up; land prices go up. Land prices go up because the desirable land (land given value by its qualities, whether inherent or throug

House prices don't really go up; land prices go up. Land prices go up because the desirable land (land given value by its qualities, whether inherent or through value added through improvements) becomes more desirable. Land prices also go up when money is cheap (low interest rates), as do other assets. In those circumstances, house prices (the house, not the land) will depreciate slower than usual because having a deteriorating house is better than having cash.