[jncfhnb]

You said

> This is bc of interest rates going higher - nobody who has 3-4% fixed rate locked in will sell (until they have to).

And the asked

> Now imagine those 2 dynamics flipped the other way - what happens to prices then?

And I told you if interest rates went lower then priced would rise.

[game_the0ry]

> And I told you if interest rates went lower then priced would rise.

That's not what I meant.

I meant - what if:

- the 20-30% investor demand in the housing market would go away (demand down), and

- sales inventory went back to historical mean (supply up)

^^ then house prices go down bc demand goes down and supply goes up.

[jncfhnb]

The 20-30% of demand you’re citing is your own claim that it’s driven by all cash buyers. I’m not seeing any reason why they would possibly disappear. That class of homebuyers may comprise a smaller portion of demand, but only due to demand growth from mortgage wanters, which again implies lower interest rates.

You’re also conflating demand with quantity demanded, so this chain of reasoning is not correct.