This really comes from ultra-low interest rates. Hike interest rates to 20% (US in 1980s had over 20% APR for mortgages) and see what happens with real estate prices then.
Foreigners influx has some influence but not as much as one might think.
Foreigners influx has some influence but not as much as one might think.
It's the sub 3% mortgage rates and 5% down special that are driving housing prices up.
Like you said, wait until interest rates hit even 6-7% and watch what happens to housing prices.