What should appraisers go by other than "what other people were willing to pay recently for similar homes"?
Look up "appraisal gaps" in 2021 news. Appraisers and banks already try to curb this some - the bank doesn't want to loan more than they could get back if the market changes an over-leveraged buyer goes bust and they owe more than the property is now worth in a new situation - but guess what else happened recently? The stock market went up up up, crypto went up up up, etc... buyers had enough cash to cover the gaps.
The difference between now and 2008 is that people had much more numerically-sound financial footings to drive these bidding wars. So I don't expect it to implode without other things imploding first, this time around (you could argue that they had those sound financial footings because of inflation in other markets, like stocks, but the stock market has merely corrected to pre-2020 trends, not imploded).
Look up "appraisal gaps" in 2021 news. Appraisers and banks already try to curb this some - the bank doesn't want to loan more than they could get back if the market changes an over-leveraged buyer goes bust and they owe more than the property is now worth in a new situation - but guess what else happened recently? The stock market went up up up, crypto went up up up, etc... buyers had enough cash to cover the gaps.
The difference between now and 2008 is that people had much more numerically-sound financial footings to drive these bidding wars. So I don't expect it to implode without other things imploding first, this time around (you could argue that they had those sound financial footings because of inflation in other markets, like stocks, but the stock market has merely corrected to pre-2020 trends, not imploded).