Why isn't housing a normal auction process?

[Stormrider]

Housing market is polar opposite.

Material merchandise auctions (non estate) start low and progressively go up until someone wins by time or reaches the buyout price.

Housing markets do the opposite. Sellers start high and gradually lower their price to find acceptable buyers.

EDIT: I'm not saying bidding wars never happen, is just incredibly rare that housing does turn into an auction IRL.

I am going to guess you are american and have never been in a community where housing shortage and an abundance of fools and money. In Canada in the province of Alberta this has happened in the last decade. Most houses sold for hundred of thousands of dollars more then listing. Realtors would not even sell houses until they got 4 or 5 competing bids. Some properties literally doubled in price from bidding. You still after the bid have mortgage insurance approve the property value. But at the time they were approving everything sky was the limit.