tl;dr: Houses are so expensive that people can't afford a down payment, so banks let people buy houses for no money down, driving up the purchase price of houses.
This is a great point to reinforce. Low interest rates are a HUGE driver of housing prices.
No one knows what interest rates will do, but if they go from 3% to 6% (historical average), then suddenly everyone can't afford as much house and prices decline.
No one knows what interest rates will do, but if they go from 3% to 6% (historical average), then suddenly everyone can't afford as much house and prices decline.