[nemo44x]

The price of a home is what people that want to live in the area are willing to pay per month (important detail!) to live there. This is made up of the principal, the interest, and property taxes. As interest rates fell more and more, the interest part of the monthly payment went lower and the principal part went higher. Coupled with inflation, we saw dramatic rises in prices.

Interest rates are going up so we'd expect to see prices go down, and they likely will in some markets. However, we are also seeing inventory dry up since who wants to sell their house and get a new mortgage at a massively higher rate?

With a low interest rate and inflationary pressures, current home owners are living for free. They can leverage this as well as their appraisals have all shot up.