Some are wondering how in the heck houses are selling for way over list price again? Is the market taking off? Is it a supply issue? Demand? Multiple offers where cash is king.
And at the end of the day, who really sets the prices?
IMHO, it is the Banks. This time last year when rate hikes became a reality, the Banks & their appraisers turtled. They left hundreds if not thousands of people helpless as approvals were yanked & appraisals were 10-20% lower than anticipated. IMHO, the Banks tanked the market last year.

Over the past 2 years, we've seen a resurgence of the licensed flippers.

These agents are not interested in serving buyers & sellers, rather, they're constantly looking for deals for themselves. They earn full commission when they buy & save selling. Now where have I seen this before...mmmm 🤔

I'd have to go back to the late '80s/early '90s. This behaviour was rampant, but guess what?

When the music stopped, prices started to stagnate & decline because of a recession and all of a sudden...

A mortgage broker told me that right now, people have huge debt load but extremely high credit scores because they can rob Peter to pay Paul-in other words, they can make their payments for now, just can't qualify for more mortgage$ at a Bank- have to go the secondary route. Also, @CMHC_ca and @GenworthCanada claim the average credit scores of the borrowers they insure is 750-800- at one time, these companies insured the bank against default for "riskier" mortgages- bruised credit (620 min), <20% down.