The Housing Market Is Artificially Inflated

If the housing prices follow supply and demand why are there currently 500k more sellers than buyers? Why are houses sitting for months at a time? I believe big corporations may have just been selling houses to themselves at inflated rates to not only bolster their valuation but to gain complete control of the housing market by placing pressure on regular homeowners amd icing out prospected buyers.

Companies can deduct property taxes fully as a standard ordinary business operating expense, while homeowners can deduct property taxes on personal returns only up to state and local tax caps ($10,000), and only if itemizing. The companies valuation grows as unrealized gains so they're never taxed on it.

Typically houses are valued by using comparisons of what other houses have recently sold for in the area. So it wouldnt even take owning a large stake in a neighborhood to change that number significantly. Maybe 3-6 houses sold in the neigborhood at a $50k mark-up over few months or to years can adjust the entire neighborhood. Neighbors are glad to have gained value. Some neighbors and companies have sold those houses at the mark-up and have made money from unsuspecting families. So far everyone is happy.

Then the economy tanks. The scheme has run for a while now and the homeowners dont even realize they've been trapped. They try to sell their $100k inflated home which they bought $50k inflated; no buyers. Rising property tax, insurance and interest rates drain the regular working homeowners finances. They go into forclosure. They get tax liens. The house hits the auction block. Great time to buy a house right? No, the same corporations that caused the problem will out bid you on every single property with money they borrowed against the shares they inflated (tax free) as well as with money from tenants whose rent was adjusted due to the valuation of the property which the company inflated, and pay up too 100% the true value of the home, that you can't afford because there is no loan to participate in auctions.