A bidding war apparently has broken out among first-time homebuyers rushing to purchase units before the $8,000 tax credit is due to expire next month.

Not surprisingly, the bidding war is getting irrational. Take for example one couple that bid $16,000 more than expected for a Roslindale house. So to save $8,000, they spend $16,000.

We’re far from a return to “irrational exuberance.” But we are witnessing a petri-dish example of irrationality in the making.

File under: Not good at math.

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