[AnimalMuppet]

I think the key is interest rates.

Most housing doesn't face the demand part of supply and demand in the purchase price. The demand curve is set by the monthly payment. The relation between monthly payment and total price is controlled by the interest rate.

So if interest rates rise, home prices have to drop (or at least not rise) until wages rise.

Unfortunately, this doesn't actually help, because it doesn't lower peoples' monthly payments...