Another possible thing that makes house values so high is it's like buying a car.
Sometimes all the salesperson wants to know is "what payment ya lookin' for".
With house values what they're workin' is the monthly payment.
Lower interest rates and longer terms like 30 years,
or even these crazy "interest only" mortgages,
all these things allows a much higher price and larger financed amount,
but keeps the monthly payment "livable" and makes them a TON of interest money.
I had a 30 year 7.5% loan, and after payin' for 10 years,
I refinanced for 20 years at 5.5% and cashed out $15,000 !
and from the VERY FIRST PAYMENT on the new mortgage
was already payin' more principal than I was after 10 years on the 30.
And the payments were almost the same ! maybe $25-$30 more.
They're workin' towards turnin' us into Japan where, I believe,
mortgages are for a very long time, and inherited from the parents.