The stock market lost over $7 trillion, and the Fed “let” people lost all that money.

So far, Ben is still saying we’re in for a soft landing, but the buyer psychology has seriously shifted. What would it take to shift the psychology back, to get people excited about housing?

Another thought: even if interest rates had stayed at 1%, there is a limit to how high housing prices can go with flat wages. There would have been a ceiling anyway. Irrational exuberance usually pops with one event which reverses psychology. Then the downward momentum is as strong as the upward momentum was a few years prior. It is difficult to shift this investor psychology. What would it take for buyers to come out in full force again, i.e. for all of us fence sitters to jump back in and buy?