I guarantee the average home buyer does not know that houses are a hedge against inflation. There's a good chance the average home buyer doesn't even know what hedge means in that context.
[1] https://www.housingwire.com/articles/49443-the-average-down-...
And there are still neighborhoods that are in decline. Opportunity to get in before they gentrify? Maybe, but it's a gamble.
That said, it's probably not a driving sentiment, rather, just the basic overall impetus of inflation and low rates.
It could be that there are whispers of increasing rates and everyone is looking to lock in.
That said, in around 2006, this was the feeling as well. The major crash. And as soon as things were getting frothy again - COVID and major turmoil.
Finally, it should be noted, that there are external factors driving inflation, if even some of it is temporary, which is cost of transport, and supply chain issues in China, and of course, tarriffs.
That said, Fed probably needs to raise rates.
Of course the loan itself is worth less to the bank during inflationary times. You make more money, your payment stays the same, and real estate prices will rise somewhat, but it's not as simple as you make it seem. I'd be worried if I were planning to sell within the next few years.
BlackRock owns around $60 billion in real estate assets. The value of the housing market in the United States is more like $36 trillion.