Low interest rates have a lot to do with the high prices. Prices seem steep if you’re looking at prices and prices only. As a home buyer, I think it’s more important as to what your monthly payment is going to be vs. the (crazy) prices that the market is dictating. Assuming a 20% down payment, and you’ll have to cough up a little more up front, monthly payment for a $450K house at 3.5% interest rate is ~ a $300K at 7.0%.
