All you have to do is follow Zillow listings in your favorite market areas. The homes next door to us, essentially the same size and quality, both have sold in the past year. One sold rapidly back in February for close to $500k, and the other just closed at $385k after 2 months on the market. Ouch!
A mortgage is like a financial bond.
My personal view is that rates were held too low for too long producing a financial bubble that included real estate.
Homes have been selling below assessed value in my neck of the Upstate NY woods for a while now.
Prospective buyers don’t want to assume confiscatory annual property taxes in the high four to five figures.