That's only really true if you are talking about specific houses and locations, while keeping everything else unchanged.

In general, houses are just as desirable as they were a few years ago when they were half the price. All that has materially changed is the supply and cost of credit.

The same thing works on the downside: broad price falls are not due to mass desirability changes. They are due to credit becoming harder to get and more expensive to repay on a monthly basis.

Finance 101: asset prices move inverse to the discount rate.