Higher mortgage rates following a multi-year period of almost impossibly low mortgage rates. Real estate investment buyers outbidding other speculators, driving up the prices of houses nationwide, as flipping came back into vogue.
When there's next-to-free money to be borrowed, you can bet it will be borrowed. By anyone who can get it, for any reason at all.
Lots of ZIRP-driven mortgage date was originated over the past decade. Now, with mortgage rates near 8-year highs, money isn't so free anymore.
And sellers now find a wildly frothed-out market desperately trying to maintain nosebleed pricing in the face of housing starts that are still ramping up despite falling sales.
And inventories are spiking dramatically in what were the hottest housing markets, yet sellers are still holding out for peak-bubble pricing.