[pepsi_junkie]

It had to happen. It was irrational. My mom sold her home in January and it was insane. Sold for $80,000 above asking after a bidding war (it wasn't a mansion, that was a HUGE premium). I think she hit the peak. But it was unsustainable.

But I'll say this, we had a lot of cash offers. The ultimate buyer paid cash, actually. So interest rates rising are not the entire story of the sowdown.

[refreshed]

We should definitely see less bidding wars. Do you mind me asking what part of the country your mom sold her house in? I just can’t see the great exodus from New York and California slowing down too much regardless. That is my uneducated opinion.

[woodbutcher1963]

A 25% correction would be good for a lot of markets in the US.
Some places like Boise have doubled in three years. The prices are going to need to come down to make up the difference in the interest rates going up.

The fact is there are parts of US that have gone up in price way to fast. A 100% increase in a three year period is never sustainable.

People will eventually move to places like Wheeling, WV because it less than half the price of other cities.
Many people do not need to go into the office anymore to make a living. That means there is no reason to buy a house in the suburbs of city X anymore.