Did you just link to the change in the housing market over the past year? Washington Post:

D.C.’s median sale price soared to $460,000 from $405,000 in March 2012, an increase of 13.6 percent year over year. (sic)

My link:

Sold: $445,000 in May 2004 He would prefer to own if it made financial sense. "I expect we'll probably end up buying again, but only when prices adjust," Baker says.

Let's subtract the $1000 he paid for the best argument against the existence of a housing bubble. On the face of it, you appear to be arguing with a man who made $39,000 cash by betting on the obvious - though the actual number may of course be less.

Your general argument seems to deny the usefulness of hedging.