Mostly with Monopoly Money!
Expect the rising home values to fuel a new round of home equity iine of credit ( HELOC) lending. While it helps the economy in the short run, it can be devastating when home values fall. Many borrowers take advantage of interest only payments and eventually find themselves without equity in a recession. It’s at this point that government regulations kick in, freezing the line and sometimes requiring the loan to be called. And, as loans are called, real estate values drop and we enter another downward spiral affecting almost all Americans. Paper equity (stocks as well as real estate) is like a free lunch, and everyone knows there’s no such thing as a free lunch. True value is only established when you buy and when you sell, and don’t forget to allow for the government’s share, unjustly earned without risk or sacrifice.
Increasing housing prices? Yep, monopoly valuation it is. After the subprime debacle, this is a joke.