Inventory will likely go down, but that doesn't really matter if demand goes down further. A lot of folks think that higher interest rates are going to result

Inventory will likely go down, but that doesn't really matter if demand goes down further. A lot of folks think that higher interest rates are going to result in more people sitting tight which will lower inventory, which in turn will keep prices high. But for most folks, when they sell a house, they are also buying a house. Their net effect on supply/demand washes out. The market is going to be determined by the balance between first time buyers and investors, home builders, sellers due to life events etc... More people sitting tight due to interest rate increases isn't going to save the housing market from price declines.