Maybe someone can explain this to me. I get that housing demand has been increasing over the years which has driven up prices. What I don't get is this overnight boom that's to me artificially driving up prices to bubble levels. I've heard everything from low interest rates and pent up demand causing the huge demand. Well, what good is low interest rates if you're losing that savings by paying above what is "reasonable" market for a home. Then the huge demand. People were living in homes before this run up. I don't see a mass of homeless people all of sudden getting financially healthy that is significantly adding to the pool of buyers. I heard financial institutions are playing into this frenzy by buying up real estate. I'd like to know how big a percentage it is.
This is all the same in my eyes as the craziness going on in new and used car sales. It seems people just flushed any common sense they had down the toilet.
Here is a classic example of this irrational behavior:
https://www.washingtonian.com/2021/0...ing-88-offers/