Whatever the reasons, many Canadians are currently looking for a home - many more than those trying to sell. You don't need an economics degree to understand what the forces of supply and demand do in these conditions. In the housing game, this is what is called a sellers' market. And a sellers' market can be dangerous, particularly for the inexperienced first-time buyer. A sure sign of a sellers' market is that homes are consistently selling for more than their asking price.
Potential buyers can become desperate in such a situation.
They make irrational decisions. And many get burned - buying a home that exceeds their budget or doesn't meet their needs. There aren't enough houses for sale, and most of the houses you look at will be unsuitable for you or too expensive. So be prepared to keep looking. There is a lack of supply.