dramatically, but I think resale prices will stay relatively high simply because of supply and demand. I would bet a very large percentage of Americans either own their home outright or have a favorable rate around 3% with a good chunk of equity.

This isn’t like 2006/7 where homes were purchased with zero down and stated incomes. People have much more “skin in the game” and aren’t likely to walk away and short sell/foreclose like 2008-2012.

People are definitely over extended but it’s definitely going to put a strain on vacations, toys, boats, RV’s etc before it gets close to the housing market. The only people selling will be recent divorces and those with job changes so supply should stay low keeping resale home prices up.

I do think St George has a reckoning coming and all of those Airbnb’s will flood the market and we might see panic sells there as people get out of their “investment” homes. The local wages in town simply don’t justify the price of real estate there.