Why is that?
Rates are a lagging indicator after inflation has happened. We canāt get inflation without wage growth. Wage growth means people can afford higher payments. Also, inflation means the cost of new construction is higher, so home prices will be higher.
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Wage growth >> Inflation >> Rate increase >> Cost of construction increase >> House prices increase
In other words, house price increases to nullify the wage increase 
You didnāt get a better house, just pay more for it because you can afford to pay more due to a wage increase 
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Again, also as interest rates increase you tend to get the fence sitters jumping off and getting into the market (thinking better lock in while they can) and if inventory is stagnant or low this pressures the pricing to go up even more.
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I fixed the graph in the article.
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I remember that Harvard was saying no housing bubble in 2005-2007. A laughing stock no one pays attention to. Better focus on something else, Harvard.
I was convinced of a housing bubble during the same time frame. Harvardās no bubble theory was making me doubt myself occasionally.
Harvard forgot to apply inflation adjustment to payroll 
and family income 
I feel a little softening, do you guys feel it?
Harvard was right. 2005 wasnāt a bubble if you can ride through the wave.
Looks like the rental market is recovered from the spring doldrums. We had a couple of units turn over in the last few months and they both rented on the very first open house at a (4% YoY rent increase). I did some skimming of postings, and the number of vacant units are down significantly in sunnyvale, north san jose, san mateo and rents are up. It was kind of stalled from late summer of last year till the last couple of monthsā¦
YMMV
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This San Jose one has been on the market now for 22 days. Itās a flip. Iāve posted about this one before. I drive by this on the weekends and have seen them at work. Looks like the flipper took 7 months to list this. Itās on a busy street and still active after 22 days.
Local governments broke their own housing markets, and they will have to fix them. Evidence suggests that in many of the Northeastern and Western communities where price-income ratios are highest, those high housing prices result from excessive land use regulationāthat is, from policy choices of local governments. Making housing more affordable to middle-income families requires those same governments to revise their zoning and allow more housing to be built, especially near jobs and transportation. States can encourage better local regulation through carrots and sticks, if they figure out the politics. At the federal level, HUD could more effectively use its bully pulpit to call out communities that obstruct new housing, and share information on how to build housing more cheaply.
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Yes, some love for San Hoā¦