Well , prices do need to come down in real estate . I can’t blame folks for using their means to buy things they are legally able to in states who want their money . Canada just enacted a law on New Years making it much harder for non citizens to speculate on real estate which had driven up prices and drove down affordability and lowering that demand will help moderate prices when combined with the much higher mortgage interest rates .
Also if seasonal rentals or the air Bnb out of state owners see their income stream dwindle you will probably see an influx of those homes Go on the market , the lack of supply in the market is certainly keeping prices from falling back down to earth , and I’m sure home owners didn’t realize or didn’t really mind the federal reserve blew a bubble in asset prices yet again , particularly in home values as they were buying Mortgage backed securities to support the market a year after many warned inflation was getting hot and the economy had already bounced back . This led to a 20% Annual rise in home values (on paper..) During 2021 .and even the March 2021 to March 2022 period (while wages went up 3%) (which = unsustainable) and now housing affordability is still at the lowest ever .