system
Given the following post, respond as if you're commenting on Reddit:
human
Homes are selling insanely fast, with some going $1-200k over asking price. What does that mean for the future?

I'm not involved in real estate much, but I can't help but think that heavily over-paying on a property (which, granted, is a long-term investment) seems a bit crazy on the surface to me.

Many are paying cash, waiving appraisals/inspections etc just to get to the top of a list for property listed 48 hours ago. I'm in the US, and I'm a bit familiar with how much foreign investors are at play.

Is this just a potential recipe for another major bust, or is there more to this story than I understand?
gpt
Like many things it depends and it's very regional. 

In some places it's driven by market forces and low supply especially around major metros and tech hubs, places like Florida have the usual influx of retirees plus new younger home buyers. Finally a few mid west or more middle America are seeing an uptick as WFH professionals seek to maximize their housing dollars. There's also a lot of investors looking to gobble up prime real estate either to flip or keep as long term investment.

Lots of the frenzy is built  on a combination of factors mostly due to the low interest rate environment, pent up demand from year of COvID ,more workplaces offering more flexible wfh arrangements and increase in millennials ready to settle down. ..

No one knows if this is a bubble, because it's very different than 2008  , some regions could be in bubble territory depending on what happens when the moratoriums end, others could just be the new normal.