The biggest monkey wrench IMO is that increased inflation could dampen the nominal drop in housing prices. There would still be real (adjusted for inflation) losses in home prices. Problem is that the accompanying interest rate increases would dampen the housing market. Who would be the winners in that scenario ? Historically in inflationary times it is best to own hard assets (e.g. property) and even better to have locked in a low interest rate to increase leverage in that investment. Not saying it’s gonna happen, but it’s a scenario that throws a monkey wrench in the plans of bubble sitters.
