It’s true it’s less than some other places, but it’s almost double the headline rate of inflation over that time. For a town that—let me tell you—truly has nothing going on.
I don't know what town this is but the DC Metro area has a ton going for it. The population has almost doubled over that time period. If your town only approved minimal zoning increases during that time then of course prices will shoot up.
What was the mortgage interest rate in 1989? As rates go down, prices go up, so unless the interest rate environment of 1989 was similar to 2021, I don't think it's fair to compare only the home sale price.