Your analysis is very interesting. The basics of house pricing is: desirability, supply, and affordability. I had not thought about the accumulation of equity as an ability to pay more. but of course the more you can transfer to the next house coupled with low mortgage rates really can multiply your capacity to pay more.
I am active in buying, renovating, and selling in both Canada and the US so I have a more than passing interest in housing prices and look forward to part three.
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