There is a very interesting/confusing situation in real estate right now.
Currently there is an inventory shortage of homes available for sale which is driving up home costs. Normally when this happens people who see good gains (typically long time owners) will put their property on the market. Inventory levels will rise and may even begin to reduce rising house costs. Simple supply & demand.
The problem is that a) sellers realize that they can't use their prior mortgage interest rate of 4-5% on a new purchase, as rates are now ~8%, b) to sell a larger home they have grown out of and downsize to a smaller home, may cost them near as much as they sell their existing property for so they will eliminate a lot of that gain. While they want to sell to take advantage of high home prices, they don't have a place to go. Renting isn't a great option as rental rates are also extreme. What's the point of selling and making a good gain and then over paying for something that will cost you more?
Last year the average over asking price paid above it on at $470k home was $70k. People who have overpaid, and now are seeing rates at 7-8% are gonna be in trouble. People are now tapping into their 401k's and credit card debt is at an all time high. In short, many people are getting over extended.
I am starting to see prices drop on homes for sale. Tells me we may have hit the tipping point.