Could this ne why people are overpaying for houses?

[Brian Garlington]

https://money.com/home-buyers-...

[Dave Spooner]

@Brian Garlington I think that could be a factor, but I think there are three primary causes:

1. Inventory is low which means more people are bidding on each property
2. The pandemic was good for many people's personal balance sheet. They spent less and possibly received a stimulus. That means they have more money for a down payment and can purchase when maybe in the past they could not
3. Interest rates are extremely low so people can afford more in a monthly payment (which means more in total purchase)