Prices do not increase by the same amount in all price bands, for several reasons, but a major one being the cap on federally backed jumbo loans. Secondly, some

Prices do not increase by the same amount in all price bands, for several reasons, but a major one being the cap on federally backed jumbo loans. Secondly, some states like CA tax properties on the purchase price, so the more expensive the property, the higher the tax bill will be, which again is factored into the financing along with interest rates etc. At least in CA, home prices for typical working class folks have risen much faster than homes that were already expensive. This makes it possible to jump into the next price band once enough equity has been built up on a "starter" home.