Cheap access to mortgages encourages people to buy. Lots of people. You are not acting in isolation. The price of housing jumps.
Adding good new stock takes time. Its not simply a matter of the time to build a new house. Its the time to develop the new area, zoning, commercial properties people want close, infrastructure, etc. It can easily take a decade in highly regulated areas.
So supply can't shift to meet demand. Prices rise because lots of people see mortgages they can afford, and jump on it. Then speculators get in the game, and tie up stock without anyone living in it. Flippers are fixing up houses, instead of letting them out. So a bubble is formed because people with good intentions made mortgages too easy, and prices climb.
Adding good new stock takes time. Its not simply a matter of the time to build a new house. Its the time to develop the new area, zoning, commercial properties people want close, infrastructure, etc. It can easily take a decade in highly regulated areas.
So supply can't shift to meet demand. Prices rise because lots of people see mortgages they can afford, and jump on it. Then speculators get in the game, and tie up stock without anyone living in it. Flippers are fixing up houses, instead of letting them out. So a bubble is formed because people with good intentions made mortgages too easy, and prices climb.