Real estate markets are mostly local and so different markets respond in different ways.

Vancouver is as high as it is largely because of the stimulus from the Olympics this is over now.

The headwinds facing the more overvalued markets are now mounting.

New CMHC rules requiring a larger down payment.

New harmonized sales taxed in BC and ONT will add to the closing and carrying costs.

Government stimulus spending is coming to an end.

Most of all afford-ability is being stretched. When the first time buyers get priced out the resale buyers can not move up.

As ebear says the market can remain irrational but it will eventually always return to the mean. The current market looks like a rush to get in before prices rise or the rules change.

Longer term what can not be sustained won't be.