Because real estate works somewhat similar to ponzi scheme because of low liquidity and lag in the transaction settlement. Everyone wants higher return one over the other on each sale and it ends up in speculation loop.
The price rises without new increase in the supply, because you would not lock-in to a particular house on just your first visit. So, each of these visits from each person constitutes each time to total demand. And demand gets a bit inflated. Speculative nature of real estate on top of that, encourages the sellers to hoard with higher prices (like a synthetic monopoly mindset).
Even if one buyer locks into a higher price, the effective market rate goes up because every seller in that area expects much higher price than that.
Price based on Supply and Demand only work properly in a Open Market with High Liquidity.
You don't have to hire all of them, You just have to raise the market rate and raise everyone's expectations. That's all.
The more money you got, the more you can manipulate the market.
Its the inefficiencies of the first price auction.
The price rises without new increase in the supply, because you would not lock-in to a particular house on just your first visit. So, each of these visits from each person constitutes each time to total demand. And demand gets a bit inflated. Speculative nature of real estate on top of that, encourages the sellers to hoard with higher prices (like a synthetic monopoly mindset).
Even if one buyer locks into a higher price, the effective market rate goes up because every seller in that area expects much higher price than that.
Price based on Supply and Demand only work properly in a Open Market with High Liquidity.