[WhiteOwlEd]

It seems like it rate hikes would reduce demand, and I think policymakers believe a reduction in demand will force the price reductions.

For example, in the US, recent interest rate hikes led to even larger mortgage rate hikes. The increase in mortgage rates had the effect of making it more difficult for people to afford homes. Once mortgage rates started rising here, I started to see a reduction in homes sold and it has started to lead to a slight reduction in home value.

[starkd]

I've noticed more for sale signs popping up. Homes were being snatched up before they even had a chance to put a sign out front, but now it takes a little longer. Home prices were getting out of hand.