A housing crash needs distressed sellers willing to unload properties. Rising rates suppress buyer demand but actually make existing homeowners feel wealthier, since their locked-in low rates beat current market rates. Without forced sellers, prices stay up.
If you want to have a housing crash, you must have a massive amount of distressed sellers. Period. End of discussion. If you don't have a whole bunch of distressed sellers, you can't have housing crash. I'm sorry, what's happened that's really interesting about the high rates causing demand destruction is for all of these people that have these cheap mortgages, it's actually made their house more valuable to them. And here's what these like linear thinking, myopic people just simply don't understand. Something can be more valuable to you you than it is to somebody else. So the value of a house on the open market is lower to a new buyer that has to pay 7% interest, give or take, than it is to the existing owner who's paying only 3%. Interesting.
