That is why unemployment would have to go up to have a major effect on the real estate market.
IF you lose your job and are forced to relocate to get a job then you have to sell whether you want to or not. Then we start getting short sales and foreclosures. Now, if you are forced to sell you will still have equity unless you bought your house in the last couple years in certain markets.
With 3.6% unemployment people typically do not have to relocate. Especially when so many jobs allow you to work from home.
Agreed—what we are drifting towards is a society where it is very difficult to change your “caste”.
If you are a homeowner and/or have a job where you can work from home you can arbitrage the housing market (including moving to lower cost areas as needed/wanted).
If not you are in trouble.