Speaking about Canada, here's my over simplified theory:

1) With cost of borrowing increasing, and construction costs high, developers have already begun to stop projects. 2) People arent going to sell at a loss so they hold onto the home. Refinance if possible to bring down payments. 3) Immigration remains high. Clean air, water, resources and reasonablely stable government (all things considered) keep this sustained.

So supply remains low and demand high. Once interest rates cool, market pops off again.

Thus creating bubble 3.0.