Mortgages too. Same thing as 2008, although it will take longer to achieve the same result. People are losing their jobs, no longer able to pay mortgages, housing prices fall.
Job loss etc is temporary and should even out in less than a year (uneducated guess).
But if 1% of the population dies, that's a permanent demand drop!
Demand is not the same everywhere. I expect the in demand areas of the US to continue to stay in demand. Prices in the areas without demand will go down further.
I generally have believed that as well, but wonder if there will be some flight away from cities after all the dust has settled, at least in the shortish term.
When demand drops for housing, that's often because people have moved in with relatives, moved in with partners, etc. After whatever triggered that, many might decide they like paying less rent/mortgage costs, so demand will never fully recover.
This inertia will probably apply also to those who die :)
And, to put it bluntly, there are going to be a lot of empty houses previously owned by elderly people.