Why are housing prices remaining high despite interest rate increases?

Housing prices are still high because people want to buy homes even though it’s a bit more expensive now.

Imagine you're trying to get your favorite toy, but the store says it's a little pricier than before. Even with that, you still really want it, and so do lots of other kids. That means there are more buyers than there are available toys (or houses), so the price stays high.

Even though interest rates went up, many people have good jobs and feel secure about their money. It’s like having a piggy bank that's full, you can still afford to spend some of it on something nice, even if it costs a bit more now.

Think of the toy store as having only one shelf with a few toys on it, but hundreds of kids want them. That’s what happens when there aren’t enough homes for everyone who wants to buy one, prices don't go down easily.

So even though buying a house is a little more expensive now, people still want to do it, and not enough houses are available, so housing prices stay high.