On house prices

Here's a good article on house prices that reflects what i've been thinking over the last couple of years. You don't need a maths degree to wonder why prices for houses go up at 20+% for several years based on nothing tangible and objective (i.e. imigration, GDP growth etc). I sure as heck wouldn't bet the security of my own home on my ignorance. I don't know this guy from a block of cheese but his reasoning is sound.
In situations like this I apply Joe's first law: If something involving money sounds overly complicated or illogical someone, somewhere, somehow, is screwing you