[vbtemp]

The funny thing is, people were saying that in 2021... and then... interest rates doubled/tripled crippling affordability, people's net worth plummeted due to decrease in stock prices, and more people got laid off... And everything keeps on trucking straight through it. I visited my realtor when she was showing a house for sale, and it was astounding the traffic and people coming up whispering to her how they wanted to make an offer that moment. And then on top of that the offers that came in with escalation clauses, waiving of all contingencies, etc. And this is March 2023.

[VirusNewbie]

I’m in a suburb of LA and while prices are still up quite a bit from mid 2020, houses in my immediate neighborhood are selling for hundreds of thousands less than they did at peak.

[nradov]

In hot markets with thin inventory there are still enough affluent buyers who can afford to pay cash using gains from other investments or family wealth. Prices are set at the margins so it only takes a few such buyers in each neighborhood to keep market prices high. Ultimately people need somewhere to live, and if they have to be in a particular area due to work or family obligations then they'll pay whatever it costs regardless of the underlying value.

[vbtemp]

Solving for the equilibrium though, if the prices fall, more buyers will be available to compete, so it ends up right where it was before.