This year 3 KEY sources of demand have been driving housing to record new heights. The biggest source is demographics as more and more Millennials turn 30 and start buying homes. Currently, the homeownership rate for people under 35 is only about 40% compared to 64% for adults aged 35-44. This will cause housing demand to increase over the coming years and is a great sign for each of us.
Second source of demand is record low mortgage rates that is making housing more affordable. This may continue for years, or just months, or even just weeks. Once inflation fears surface this "genie" can't be put back in the bottle and mortgage rates will rise. Personally, I will not be surprised if mortgage rates hit 4% next year.
Third source of demand is we now have a much stronger "relationship" with our home as our home has become an office, a gym, a school, and a stay-cation location. Thus, we need homes with more space both inside and outside. Thus, people move from apartment and condos to smaller single-family homes and those homeowners move to bigger single-family homes and on and on.