You are quite correct PPJ. I often see arguments arguing that the "free market" should be allowed to prevail. The fact is, as you make clear, the housing market is anything but free. It has been driven up by a host of government incentives, not just the animal spirits of the market. Those who decry intervention to manage prices lower should instead view this as our elected (and unelected - ie BoC) authorities cleaning up the mess they encouraged through misguided policies. Were the market truly allowed free rein prices would implode as tax free  gains were repealed and rates reset higher. Our resident Freedmans should be careful what they wish for - or at least figure out the difference between unconstrained markets and those subject to government oversight/interference.