Wow. Those are incredible prices for those properties. Some people (it seems like everyone but me) have serious coin to spend easily on real estate. I'd love to know what businesses those buyers are in!
The mortgage business... as in all the money they're spending for the next little while is going to be to service the interest on their debt to the bank.
Most of these are probably upgrades.
eg. A couple sells their $380000 condo and gets $220000 from the equity from the sale. After all the expenses and what not, they get $200000 left over, which goes to a downpayment for a new home. They buy an $800000 house, which leaves them with a $600000 mortgage.
They were able to lock in last month to the killer rates, at 3.69% for a 5-year fixed, amortized over 35 years. Monthly payments are $2536, representing about a third of their $7500 monthly combined gross income ($90000 per year).
After 5 years, they still have $553631 left in their mortgage. The 5-year fixed rate then is 5.79%, a conservative estimate. In order to be able to manage, they are forced to re-amortize for another 35 years, and even then, their monthly payment is over three grand, at $3054. That represents a 20% increase in monthly payments. They've had a few pay raises since then, so now their combined monthly income is $8000 (or $96000 per year), and their monthly payment now represents 38% of gross monthly income. Manageable, but just barely.
This is a hypothetical situation, but this is what I think may happen in the real estate market and I'm a relative optimist it seems. The problem here though is if real rates hit jump even higher, say to over 7%. That's high for the last 10 years, but not completely out of the question. The bears predict this scenario, and that would wreak havoc on the market, including causing a big drop in real house prices.