My house just appraised for 40% higher than when i bought it in 2014. Seems a bit crazy to me, but I think it is driven by two factors: the rental market is insanely expensive and interest rates are ridiculously low.
The rental market is a mystery to me, have rents ever fallen? Do present rental prices provide a floor for house prices?
For interest rates. If interest rates rise then house prices might go down, but you will be paying a higher payment because of the higher interest rate.
If interest rates fall then house prices will go higher.
One left of field factor: have you factored in child care prices? Can get pricey.
