Are buyers over paying and taking a lot of risk of am I wrong?

[Victor Gutierrez]

In the area that I live in the state of Rhode Island the houses are selling way to fast, I've be trying to buy a house for the last six months without any luck, a lot of houses are getting under contract without the buyer see the house. People are offering over the listing price I don't want to do that because a lot of the properties won't cash flow and if they do would be maybe under $50 per door. Is people over leveraging and get under water in a bad economy with tenants loosing jobs?