Recent quotes:

New Fed Paper Finds Surging Home Prices Driven by Demand — Not Supply - Bloomberg

“We estimate that a one percentage point increase in the mortgage rate lowers housing demand by 10.4 percent,” the authors write. “This is a larger demand sensitivity to rates than evidence using purely observable housing market variables suggests.”

New Fed Paper Finds Surging Home Prices Driven by Demand — Not Supply - Bloomberg

“Fluctuations in housing demand explain much more of the variation in home sales and price growth than do fluctuations in housing supply,” Elliot Anenberg  and Daniel Ringo, both Fed board economists, write. “Fluctuations in demand explain essentially all of the variation in home sales, and 80% of the variation in prices, between 2002-2021.”