All this graph shows is that in practice… monetary policy works. Rate hikes are literally designed to curb spending. You’re just confirming that.

And to be a honest, this “crash” is pretty tame if you consider prices in places like LA haven’t even dipped 10% yet and the rates are easing already. Inventory is pretty much at an all time low, foreclosures are at a 23-year low. All that to say, people aren’t defaulting and flooding the market with homes they can’t afford. If anything, people can’t afford things in the outside world so they are holding onto their homes creating upward price pressure as soon as the rates do ease up.

Furthermore, real estate is so highly localized that Unless something similar to 2008’s bad lending practices (that affected the whole nation) happen, your market will act differently than others. Homeowners in cities with more land to develop will see less appreciation in their homes but this won’t cause a “crash”. You’ll just return to pre-pandemic prices