The last time we had a prolonged period of high inflation was in the 1970s. At that time not only did housing prices reach historic lows, but it became common knowledge that houses were depreciating assets. That is, without ongoing maintenance replacing the roof and plumbing as needed the house fails and becomes unlivable and useless as an asset. In the current environment blowing a bunch of loose capital or taking out a funny money loan to upgrade a kitchen or bathroom is common, but when interest rates go up and capital is not flowing freely that level of ongoing investment becomes a real burden.
But now we have had asset values rising out of control during a prolonged period of low inflation and effectively zero interest rates therefore it will be different this time? More likely we will again see the usual. House prices will stagnate while inflation does its work and people will come to understand that housing is not an endless free money game but in fact a depreciating asset that is difficult and expensive to transfer especially when it is transformed into a boat anchor.
But now we have had asset values rising out of control during a prolonged period of low inflation and effectively zero interest rates therefore it will be different this time? More likely we will again see the usual. House prices will stagnate while inflation does its work and people will come to understand that housing is not an endless free money game but in fact a depreciating asset that is difficult and expensive to transfer especially when it is transformed into a boat anchor.