Looking at historic US housing data, during periods of rate increases prices did not drop, with 2008-2009 being the exception. However, during the previous rec

Looking at historic US housing data, during periods of rate increases prices did not drop, with 2008-2009 being the exception. However, during the previous recessions price discovery was difficult, one needed to go through an agent who interfaced with disjoint MLS systems. I suspect that price discovery through zillow/corelogic might cause faster repricing in the housing market today. Second home purchases in the reached historic levels over the last two years. There is a lot of inventory that could be listed quickly in comparison to owner occupied homes. It's not clear that a correction will happen though, wage increases, in particular at lower incomes can sustain higher rates and higher prices for homes below the median. At the high end most buyers are likely asset rich and can also sustain higher prices. The price segment that may be most vulnerable due to higher rates is in the middle.