Many people are buying homes exclusively for the price appreciation. They are using leverage to turn a $50k down payment on a $400k house into a capital gain of

Many people are buying homes exclusively for the price appreciation. They are using leverage to turn a $50k down payment on a $400k house into a capital gain of $200k when the price of that house rises to $600k. In the process, no actual value has been created. But the gambler, er homeowner comes out way ahead. Someday interest rates will return to historical norms, and these folks will get crushed. They partied hard, and the hangover will be epic. Financial prudence, scorned for the past 20+ years, will be back in style again.