It takes years for existing sellers to wake up to market shifts, unless they’re desperate is why.

If it’s a nicer area, many can ride it out through an entire bust cycle.

Most folks can get 30 yr fixed rates, so any area where most owners have stable employment and/or strong capital reserves, can cruise with zero movement for years if conditions aren’t favorable, barring estate sales, forced sales from divorces, etc.

I think partially because housing is inelastic, the demand outweighs the supply. People already in homes would rather not move than sell at a loss, especially those who have a low mortgage rate from the past few years locked in. New homes being built were delayed due to COVID(and now maybe due to interest rates?).

So even with rising rates its moreso a matter of staying stagnant rather than rising more, at least up to a certain point.

At least thats how I've read it explained.

Homeowners are just reluctant to lower, so they are happy to sit with fewer sales and higher prices. It will go down, it is just sticky because nobody wants to admit their home is worth less.

There's a lag in the index, but in August (most recent data available) housing prices were down 0.7% month over month, and 0.6% the month before https://www.fhfa.gov/AboutUs/Reports/Pages/US-House-Price-In....

But, as others have pointed out, housing prices are sticky for a variety of reasons.

There hasn't been enough time. Mortgage rates have only been high (-ish, not really that high historically) for a matter of months. Home sales are down quite a bit, so people are now sitting on houses that are priced at old prices, but are slow to sell because buyers consider it "too much". The sellers will be forced to cut prices to make sales, but that takes a while because it's emotional.

Housing prices are very sticky in the downward direction. Sellers really hate taking a hit on their asking price, and they will just stay in the house rather than sell for a long time. It will take years of elevated interest rates before prices start to come down significantly.

There is a lag.

It just takes time. Even in 2008 prices took a few years to bottom out.

Be more patient. Watch Canada and Australia.