Currently the nationwide days-on-market is still way below long-term historical norms and even below recent history. https://fred.stlouisfed.org/series/MEDDAYONMARUS
They have a much better idea of what's available and what's a good match for what they want.
[edit] No supply + high demand = prices go up. Higher interest rates only help at the margins because it doesn't actually change the demand factor which is that the humans in America need a place to live, and the more they make, the more they can afford to pay. And it certainly doesn't change the supply factor!
[1] https://en.wikipedia.org/wiki/San_Francisco_housing_shortage
[2] https://www.cnbc.com/2021/09/14/america-is-short-more-than-5...
https://www.zillow.com/research/most-popular-city-2022-31925...
This is about 1 mile from where I live in Overland Park, KS. PV is all single family homes with near zero apartments. Of course the city is trying to re-zone to put in higher density housing, and the population is vehemently opposed to it; I don't blame them. People move there for that reason. Higher density leads to more crime and other frustrations. People learned their lesson from the pandemic.
Poverty and general desperation leads to higher crime rates as people resort illegal means to get by. And that's what happens when there is not enough housing for people.
In the United States, we have a whole bunch of terrible housing policies, so maybe people are conflating density for poverty. But you can find many examples across Europe and Asia where there is little correlation between density and crime.
- "I want affordable housing!"
- "Hm, ok, how about we build new houses in the places people want to live, increasing supply to meet demand"
- "NOT LIKE THAT"
It's just like the "no take only throw" dog meme.
If you don't want to live next to other people, buy the land around you. If you can't afford the land around you, move further away. There's no reason your tastes should dictate what I can do with my property. I'm sorry, I thought this was America.
I wonder if there's been a material shift in who is making offers that won't revert to 90s behavior. Specifically, investment firms specializing in single family housing, who might have more incentives to make a lot of lowball offers and not worry too much whether they win or lose a specific bid.
Obviously you have imitators like Zillow trying to edge in as well, and step back after taking heavy losses, so its hard to say for sure where the new equilibrim will end up at.
I dont think I have seen good data that includes or calls out "investors" rather than "investment firms" I suspect that a lot of property ends up in the hands of individuals be it a vacation home, rental, air BB or flip.