Here's the reality. The reason why home prices have increased in a short time is simply, supply and demand. The supply issue has been caused primarily because of the moratorium on foreclosures. Additionally, in my opinion, there's one other item that's been overlooked by most economists, and that's the increased usage of an escalation clause.
For the most part, there haven't been foreclosures for almost two years. The timeline to allow foreclosures have been delayed multiple times. Once they turn that faucet on, the supply issue will virtually dissipate overnight, and not to be pessimistic, but, overnight we could see a collapse in the real estate market that would make 2008 look like a little annoying gnat. It does appear they will start the foreclosure process in phases, and in short, starting with those that have ignored their bank.
With the 2022 midterms, it wouldn't surprise me if they continue to delay the foreclosure process and have support from both sides of the aisle, because no one running for re-election wants a depression before an election; IMHO. This could simply be another regulatory delay, it could come as a two-week shutdown after Christmas to give a political reason for another delay, or some other cause; just throwing ideas out.
However, the most likely solution to an all-out real estate collapse is the Federal Reserve using one of its tools. They could loan a large sum of the trillions they have available to large corporations at a low rate and encourage them in one way or another to purchase foreclosures at the current market price. For example, search "Blackrock Houston." The problem with this tool is that if it's executed like it was in the past, the corporations put the homes on the market and offer them as rent to own. And in mass, IMHO, this threatens the middle class. Off the top of my head, I believe the stats on those who end up purchasing a home from rent to own contract was somewhere in the mid to low 30% range.