Following the MEDIAN price means absolutely nothing as an indication of market direction.

The market didn’t rise overnight, it’s not going to fall overnight either.

Some people are bleeding cash or wiping out their retirement accounts to keep making payments, in the hopes that the decline will stop. Nobody can bleed forever.

As actual sales do go lower, that becomes a current comp value for appraising the next one.
When someone “agrees” to pay $650K but the appraiser only values it at $620K, sellers start realizing their options a bit clearer. The deal is dead. Buyers get scared away.

Several sales will affect the values of hundreds of other homes in the area. It’s a spiraling downward slow painful (for some) descent.

The psychological effect kicks in when people start realizing that they owe more than their home is worth.
That has a more sobering effect than knowing you could rent a property for 50%-60% of what you pay to own it, but it all adds in to the equation until the bottom.

Nobody knows where/when the bottom will be.
That’s the fun part!

Don’t be influenced by the median!!!
It’s explained why on a different thread.