> government policy continues to insist that home prices can never depreciate

Those policies are for old people cashing out, rich people buying investment properties, and even richer people who own real estate developers. What do you think are the odds that in... let's say 5 years, either of these groups will have less weight in public policy making than they do today? I think it's very, very close to zero.

In markets like Canada, lack of government investment in small towns, NIMBYism preventing density, and high rates of immigration, mostly to big cities where the jobs are, put consistent upwards pressure on real estate prices despite the end result sucking people dry. I think we'll sooner see negative interest rates to prop up further spending than a government willing to address this crisis head on.