Flippers and amateur "investors" definitely drove up prices. However, the reason prices are not falling fast is not because of these people. Its because people 1) don't want to sell at a loss, or 2) they are ignorant of the market and think things are still going up.
And even if they were keeping prices high (and I reject the premise that they could do this on a massive scale), the market would eventually force them down. That's how these things work. At some point, when nobody is willing to buy at current prices, the sellers will have to reduce their prices. If on the other hand people keep paying their "high" prices, they will have no reason to lower their prices as the demand is still there. Either way, the market will have spoken.
>>>the market would eventually force them down. That's how these things work.
Agreed. I am taken aback by how long it is taken (seeing the peppering of for sale signs and tumble weeds in the neighborhood).
But you are right, the demand, or lack of, will adjust the values.