How can this market continue seeing such highs?

[Josh Edwards]

Hey guys,

I’m relatively new to BiggerPockets and I am having a hard time understanding our current market conditions.

I am from Long Island, New York, last summer due to COVID there was lots of cash buyers entering the market and they were often overbidding on properties by tens of thousands.

How is it possible that is has become normal for agents to start recommending people to bid over asking price on houses? I get the basic facts of supply and demand and low interest rates.

But how is this sustainable in the long term? In my opinion rates have become way too low and this has caused almost this bubble of inflated housing prices. I think that we will see interest rates go up by the end of this year if not then next year.

Would this lead to lower values of homes? Or would we keep seeing this insane demand for housing? I’m pretty young so I don’t have much understanding of what happened in 2008, but something about this seems pretty similar.

Please correct me if I’m wrong, I want to hear everyone’s opinions on this matter so I can better understand what’s going on.

Thanks!

Josh

[Russell Brazil]

People have been asking the same questions for the last 80 years.