@Marcus AuerbachI'm sorry - I disagree - this amount of housing inflation is unsustainable.   

Canadian housing market to me seems inflated but I'm no expert I just have a hard time seeing prices of $600-700k for 30+ year old buildings when you can purchase something half the price and age which IMO would cut risk in repairs - I'm curious if anyone had thoughts or perhaps have looked into Austin & greater area as a place to invest yourself.

You’re going to have 10% in costs to sell, so if it appreciates with inflation a couple percent per year you’ll only be even after 5 years.

The Fed has more direct influence on shorter term bonds, although if later maturing bonds like the 10YT start to rise quickly for whatever reason, the Fed could ramp up their purchasing over those notes to control the yield curve and prevent rates from running.There is massive incentive from central banks and governments to keep rates low for as long as possible, and only raise them in the face of rampant inflation.

will inflation make the property more valuable in the future?

The value of the money itself is going lower due to inflation.

The 3% is very reasonable and basically paces inflation, so it is easy to understand. 

But fortunately, inflation more broadly was still quite mild.

If you ignore inflation, prices have almost reached the 2006/2007 peak.

The market here in SD is quite inflated and not really ideal for cash flow, as I am sure you are aware.