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Originally Posted by zx10guy
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I don't think it's irrational as much as simple freshman-year economics:
When supply goes down, prices go up. Once Corona hit, a good number of homes were taken off the market. The urban flight to more separation has made this even more noticeable.
I have four family members who sold their homes in the last 4 months. All are relocations for work or move to retirement home. All sold in the first week with multiple bids above asking price.
There are segments of the economy that aren't suffering, and within those there is actually new hiring occurring.
While prices may seem high when looking at the economy in general, nobody lives in the general economy. If the economy is doing well, but you're unemployed - you can't buy a new house. This is simply the opposite case.
Even if prices are at a cyclical high, historically low interest rates are making the purchase more palatable.