While true, I would point out that the low mortgage rates that increased housing prices

low mortgage rates permit people to borrow more and tends to drive up prices

in the decade-and-a-half before 2022 was unusual for the US. Prior to about 2008, interest rates were at or higher than they are today.

Here's a graph of the 30-year fixed-rate mortgage rate:

https://fred.stlouisfed.org/series/MORTGAGE30US

Here's the Case-Shiller Home Price Index. This measures same-home prices

that it, it attempts to factor out changes in types of home being built, so new homes being larger won't drive it up.

https://fred.stlouisfed.org/series/CSUSHPISA

It's not adjusted for inflation, though.

Here's an inflation-adjusted graph:

https://www.longtermtrends.net/home-price-vs-inflation/

Between about 2011 and 2022, the real price of a given house rose rapidly in a low mortgage rate environment. In 2022, mortgage rates returned to something that's more historically-normal.

I expect that to sell a house in this environment, a homeowner will probably have to cut what they're asking.