> The higher the interest, the lower the prices, which sounds logical but...the prices kept increasing. This is a side effect of "demand" I think. Higher inte

> The higher the interest, the lower the prices, which sounds logical but...the prices kept increasing. This is a side effect of "demand" I think. Higher interest rates increase mortgage/financing costs. This is supposed to "destroy" demand. Except, there's so much demand (and so little supply) that it didn't, and we're getting the worst of both worlds. In the US: A $500k 3/2 house at 2.75% 30-year fixed in 2020 is now $750k at 6.75% It "shouldn't" have played out that way but my theory is Home buyers from before ~2015 (random guess) are "up so much" in equity from this quiet "real estate inflation/demand appreciation boom" that they don't care to "overpay" $200k compared to what they would've paid 4 years ago because they were "gifted/given" $200k+ in equity out of the sky. They're just moving the money from one property to the next.