I don’t pretend to understand all of this.
But, from what I gather, home prices have escalated sharply, due to supply and demand. There is the given supply, but the demand has come as investors are buying so many houses and condominiums. Which pushes up the prices, because demand for housing has increased because of so many investors in the housing market.
What I don’t understand, is why so many investors have decided to buy houses, as investments. Why have so many investors decided to buy houses, as opposed to investing on Wall Street, or investing in any other assets?
The net effect seems to be, to make it more difficult for everyone to buy a house and get a mortgage, because the investors have pushed prices of housing up.