There are several factors that have contributed to the rapid rise in house prices over the past three years, including:
Low-interest rates: Interest rates have remained historically low, which has made borrowing more affordable and increased demand for homes.
Limited housing supply: There has been a shortage of available homes for sale in many markets, which has driven up prices as buyers compete for a limited supply of properties.
Population growth and demographic changes: Population growth, particularly in urban areas, has increased demand for housing, while demographic changes such as millennials entering the housing market have also driven up demand.
Changes in lifestyle and work patterns: The COVID-19 pandemic has led to many people re-evaluating their living situations, with some choosing to move to larger homes in suburban or rural areas. This has increased demand for homes in these areas and driven up prices.
Investor activity: Some investors have been buying up homes for rental properties or flipping, which has increased demand and driven up prices in some markets.
Overall, a combination of factors has contributed to the rapid rise in house prices over the past three years, and the exact mix of factors will vary by location and market conditions.