People keep hoping or expecting this, yet prices keep going up. As long as wages for top earners keep rising, so will demand in expensive areas. Also, real estate did well in the 90s despite high interest rates, too.
So yes, I expect this rate hike to cause a big dump in house prices. In a few months or so I'll be right or wrong.
But it's also possible that it's priced in. It's been expected for the past 6 months the fed would raise rates a lot.
If you're on a fixed-rate 3% mortgage that loan is looking extremely valuable vs. the best rate you can get right now.
We won't see 2008 again but prices will be coming back down to earth from their pandemic rocket ride.
https://www.nar.realtor/blogs/economists-outlook/existing-ho...
Prices have plateau'd or gone down
However, you can get "trapped" as I did if you bought near a high point, and then interest rates and prices dropped, and since I was now "underwater" I couldn't refinance, even though I was perfectly capable and did continue to pay on the original loan. Eventually the property appraised high enough to refinance again.
That's not the case for refinances after Jan 1, 2013.
There is no particular reason to believe rates will go down again. They might, they might not. Historically todays rates are around the normal low.
That said, if you have rent control locked in, the choice is likely easy.
This is very location-dependent. In some cities it is true, it some it isn't, in some it depends on the segment of the market.
https://www.statista.com/statistics/205937/us-mortgage-origi...
Which means people with 2% mortgage rates aren't going to be likely to sell their houses and buy another one at 7%. Which puts upward pressure on house prices due to fewer houses on the market. You have both demand and supply effects.
In the past in the US, nominal house prices haven't gone down during periods of rising interest rates. Maybe it will be different this time, maybe it won't.