[Wuli]

“But read the numbers I posted carefully. For someone buying a home, the price of the home will end up being HIGHER”

Sellers raise prices because buyers can afford bigger mortgages?

On what evidence?

[Alberta's Child]

What do you think has driven up the cost of homes over the last 25 years -- even as income growth has been marginal at best, stagnant at times, and negative at worst?

Go to any realtor website, and you will invariably find a "Mortgage Calculator" function that lets you estimate your total monthly payments. They're not selling the home to you based on the price. The reality is that they're selling the home to you based on how much you can afford to pay on a monthly basis.