I think it is mostly related to the lower interest rates...See what happens if interest rates hit 9%.
During the last great run in real estate values (January 1976- January 1979) the fed funds rate rose from 4.87 to 13.82 percent. While that was happening home demand and prices continued to skyrocket. Low interest rates play a role but demand is much more important.
Look at the real estate bear markets of 1974-75, 1980 and 1990-92. In each of these the prime rate was falling during the years mentioned. Internationally, real estate fell in Japan throughout the 1990s despite interest rates falling to near zero.