You're forgetting that the demand side of the equation is very sensitive to the cost of credit. Put it this way. We know for example that a lot of homes are re

You're forgetting that the demand side of the equation is very sensitive to the cost of credit. Put it this way. We know for example that a lot of homes are rented out as AirBnBs. We can safely assume that many of those were purchased for that purpose and that the purchase was funded with borrowed money. The AirBnB income and anticipated capital gains made the borrowing worthwhile. Is it still worthwhile if the cost of credit doubles and capital gains seem much less certain? It's likely that we'll see a lot of investment and speculative demand disappear leading to lower demand overall. In other words, demand isn't just for properties as homes - it's for properties as investments as well.