[curiouscavalier]

Appraisals also act as a gate for prices due to lender requirements. A bit round about, but I can see how looser appraisals can enable inflated prices. Imagining the opposite extreme is interesting: What if appraisals never returned with higher prices than the last sale of that house? Some markets would see increases from people paying the difference out of pocket, but I’d guess the rate of price increase would be much lower. (plus other effects, of course).