Terrible irony or Big Shaft? Why are 1 in 7 homebuyers paying $100K over ask when the Boston housing market is 14% overpriced?

The housing divide is pulling Massachusetts apart, that's the headline affordable housing advocates are calling required in yesterday's Boston Globe.  But behind Kara Miller's column, The Big Idea, is a sequel to the movie, The Big Short unfolding? An epidemic of BLIND bidding wars caused a record high 1 in 7 MLS sales to soar $100,000 over asking price across Massachusetts last week, 4/30-5/6/22.  

Bidding wars of any magnitude were rare in the past.  Writing 25 years ago in Behavior of HomeBuyers in Boom & Post-Boom Cycles, Nobel-prize winning economist Robert Shiller warned that just 6 to 10% of homes selling over asking price was consider an overheated market. 

Ironically, nationwide, headlines are warning the grossly overheated pandemic housing market it turning. Nationwide, 1 in 5 single-family listings are already seeing price reductions before the peak of the Spring market. 

If that's three months ahead of the normal pace, what will the market look like in August -- the traditional summer markdown season? 

If @MoodysAnalytics's Mark Zandy already estimates Boston real estate is 14% overpriced, are Boston homebuyers making foolish decisions or getting The Big Shaft? That's a question we've asked the Attorney General's office to investigate, see complaint filed five weeks ago, 4/8/22.

https://bit.ly/BidWarComplaint_MassAGO

Why are 1 in 7 homebuyers paying $100K over ask when the Boston market is overpriced and #PriceCorrection2022 is predicted?  Cast your vote on the accompanying poll, and share your audio comments here or on this Twitter thread:  

https://bit.ly/BidWarIrony_NPRThread

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