I believe this is a very temporary, very targeted situation; most Americans are not in a better position to make mortgage and property tax payments than before. Those who can work remotely, as well as those who must get out of “newly-unsafe” areas, may be searching now, but this will be short-lived. I’d also think these rises in values in one place must be offset by falling values in others (that are losing their “makers”).
My state of NJ is experiencing a temporary surge from NYC, but this has happened before - it won’t be sustained. NJ is too similar to NY in terms of high costs and losing Americans/importing foreigners. Our Dem administration just passed a “millionaire tax” to ensure that nobody from NY with two nickels to rub together even bothers coming here...
“I believe this is a very temporary...”
I agree 100%! So, let’s say you decide to sell now in a hot market. Whatever increase you experience will only be taken out when you buy on the other side. Secondly, as the unemployment stays very high (now at 8.9%) there are not going to be enough people to sustain this bubble. So, expect a big decline when defaults begin to creep up. If you are a big time gambler, then by all means sell now and hope for the best. Your odds might be better in Las Vegas, though.
Second thing I learned at the parental knee, don't go for a mortgage. (First thing: tenants are anathema.)
Buy what you can afford, and shop where taxes are low. With the money you save you can work less and pursue delightful hobbies.