Just some data to ponder over. I have been tracking 2 markets this year.

Mira Mesa has a population of about 85,000. There have been 33 houses placed on the market this year most of which are in same price range.

The NCC area I follow has about 125,000. THere have been 82 houses placed on the market of which about half are basically trophy properties above $2.5M so about 40 that would be purchased by typical working folks living in the area.

Long time owners are locked into mortgages with rates in the mid 2% range with a low prop 13 tax basis and many are sitting on gains above the capital gain exclusion level. THere is no major relief in supply coming anytime soon no matter what happens with the economy. My mortage plus taxes, insurance and hoa is less than the rent on a 1 BR Apartment around here now. I am not unique here.

It doesnt take everyone in a WFH job to buy the 5 to 10 regular homes that hit the market each week in either of these areas. Hope is a good thing, maybe the best of things but no good thing ever dies