I doubt property will ever be a "bargain" for investors. I'm not sure they are in the US yet, at least not in NY and San Francisco. It is "cheap" where you don't want to live for various reasons.
O/Os will always bid the price above the price a "rational" investor should pay when considering net return on investment but this is fair enough. They are buying lifestyle, or a permanent base for a growing family, whatever, and the heart will rule and time will soften any overpayment anyway.
