In times of economic upheaval/resets, labour does not find bargains, capital does.
Housing prices might take a hit, but by the time they pop up on the open market, you won't be buying from a distressed seller, but rather a numbered corporation domiciled in Delaware that's picked up all those properties in cash, cheap.
Echoing rchaud’s comment, it takes longer to buy houses if you need to get a mortgage with a serious assessment because banks suddenly rediscover diligence in a down market, and there are always stories about having a deal fall through because the buyer’s loan didn’t get approved. If the property would need work to clean up for showing, people might also figure that they’re not getting so much less if they don’t have to pay a realtor, handyman, or cleanup crew.
If you weren’t old enough or in the right neighborhoods to see it in the last bubble, there were shady companies mailing postcards to every house and plastering neighborhoods with poorer / older people with fliers. They appeared to be looking for people with medical bills, old people who needed money for assisted living, etc. who needed money right now and might be swayed by a quick transaction. I noticed how you could cross into a less affluent neighborhood and suddenly it was like every pole had a “ca$h for ugly homes” sign on it.
People who need cash asap and can't wait 30 days minimum to pay agents and lawyers and wait for the cheque to clear. A lot of people have medical bills, school loans, credit card debt etc that will take precedence in their decision making .
Plenty of companies are out there offering quiet cash deals, they will find these properties much faster than agents with their paperwork and fees can swoop.
Housing prices might take a hit, but by the time they pop up on the open market, you won't be buying from a distressed seller, but rather a numbered corporation domiciled in Delaware that's picked up all those properties in cash, cheap.