If you are trading up, the house you are buying is more expensive than the house you are selling. In this case you want a down market. Yes, you get somewhat less for your existing house, but you more than make up for it in what you save on the new house.
If you are trading down, the opposite is true. A hot market has increased the value of the house you are selling more than the house you are buying.
Yes I absolutely agree, the greater extent "homeownership is a middle class right", the more housing price rising just is an across-the-board inflation. To the extent that the poor / non-whites are not involved, it is stealing from them.
This is why fixed asset ownership is just a rotten scheme, inflation or theft, nothing good comes from it.
"store of value" is highly overrated. Public goods and infrastructure are what materially derisks the future. Not some bidding rat race.
Cashing out comes with the hassle to move, and is less attractive during pandemic. Rich people that want to decamp boost up demand in the select few popular remote places. That was the 2020 story.
Recently I am less sure exactly what's going, but yeah, single family homes are the worst!
The rest of the inflation is due to pandemic-related supply side dysfunction, and fossil fuels which are even more subject to random things like OPEC whims.
Raising rates to bring down SFH prices and not reforming the SFH system would be colossally stupid.
It's very clear what it means - inflation. Consider a farmer in Zimbabwe who buys a used truck for 10000 Zimbabwe dollars to bring his produce to market. A few years later, he sells his truck for a million Zimbabwe dollars. He is a millionaire! But he still is a farmer and needs a truck to move his produce. Another used truck would set him back 5 million Zimbabwe dollars.
It can't go on like that. At some point the chunk of money that shelter takes out of the monthly paycheck can't grow further.