Right except for the fact that investors don’t generally get caught in pools fighting for homes. That is typically reserved for people who buy retail. If you want, go get a hard money loan and buy a home at trustee sale and then you won’t have to deal with it.
Let’s try to also be realistic. Price movements are always driven by the end user in the market. An investor or flipper is a middleman. He may pay more to buy a home to flip but it only works for him if there is someone else who he can sell to. Ultimately THAT person is who sets the price.