but what if the bubble bursts 4-5 years from now. Then this means that if may not ever go back to today's prices . As high as prices can seem, they can always go higher.
And it will likely depend on the region which option will apply. For extremely supply constrained regions with high prices (like Vancouver), I don't expect a decrease. But my guess is as good as everyone elses.
There might be older unmaintained house in desirable hood that went higher in Feb-March but unable to fetch that price again today but good product is good product and will demand premium in this region where land is a scarcity.
So we may have high inflation even if housing prices don't participate. Given the changes in rates, it seems unlikely house prices will continue the way they have.