Housing prices are Rising
While home prices have always been ruled by supply and demand, that calculation is on steroids in today's market, because of an acute housing shortage.
The shortage is worst at the low end of the market, which is why prices in that tier are rising at twice the pace of those on the high end of the market.
Nationally, home prices jumped 6.2 percent in September compared with September 2016, accelerating from the annual gains in previous months, according to the S&P Case-Shiller Index.
Prices have now recovered nearly 46 percent from the trough of the housing crash back in early 2012 and are nearly 6 percent higher than the peak of prices in 2006.