Well there you go, it was no different in the late 70s and early 80s. and guess what? It corrected itself just as it will now.
Houses can only sell for what the public can afford. High mortgage rates = stable to falling home prices. Artificially low mortgage rates = high home costs.
The payment is ALWAYS the same as the public can afford. The only time it is not the same is the transition from low rates to high rates because the homes prices were already high do to the low interest rates. Now with high interest rates home price will adjust and have started to adjust in higher priced markets.
After all, if the public cant afford the homes the homes would not sell but they do sell because the public can still afford them.
As of Nov the market was still on fire here where we are in SC and where we are building in NC we are not seeing large price reductions from the builder and homes are still selling.
Low inventory, high demand - high prices.
The world health event created this by the Fed interfering a bit too much in the market.
There never is a housing crisis, only in the media. Home prices adjust to what the public can afford and debt to income ratio has to be below 45% to qualify.
Sooner or later the housing market will catch up with demand. One must remember the entire world just about stopped production of everything due to Covid. It's not like flipping a light switch and every thing is back to normal. It will take time. I know first hand there are still shortages of some items for new builders, last I heard was a glass shortage. People closing on new homes with glass shower doors to be installed later.
Labor shortages will be solved by high interest rates which will throw people out of work to perform work in other needed areas.
All standard stuff, happens all the time for one reason or another every 10 to 15 years or so