@joannie.w: feel free to find a plot of the outstanding mortgage debt in this country - both CMHC and through so-called "private" insurers which are still 90% taxpayer backed. You don't think a half trillion dollar increase in the outstanding amount over the last dozen or so years could have an effect?

Re: mortgage defaults, you can't use them as a canary in the coal mine for a problem. They are a lagging indicator. It is pretty darn hard to default in a market where (policy-driven) price increases are still occurring. 

As to "Property is worth what a seller is willing to sell it for and what a buyer is willing to pay for it.", the underlying suggestion in your statement is that the market is free. Many policies and special tax treatments - coupled with a low rate environment and minimal efforts to address citizenship of convenience in a time of capital flight - make real estate the most interfered with market around.