Reply to zero contingencies and 100k over ask

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[quote=Anonymous][b]I wrote this response in another thread, but I thought the idea deserved its own. I don’t hear many people discussing these factors[/b].

High housing prices and large overbids are partly caused by low inventory, but low inventory doesn’t explain how so many can pay so much with significantly higher interest rates.

The answer is that the UMC/UC has benefited the most from the pandemic. Everyone has had multiple raises of 10%, compounded for several years. Meanwhile, many costs have gone down - refinanced mortgages, WFH (less spent on new clothes, dry cleaning, gas, car maintenance, lunch and dinner food budgets, home and lawn help and childcare). Also, stock market and home equity gains have been large. Add all that up and you’ve got people drowning in cash that keeps giving. What are they going to do with all that cash?! Spend it on housing, luxury vacay, expensive cars, etc.

If this is true, housing prices are coming down anywhere there are high-paying job, WFH jobs.

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