Yes. That’s correct. But some worst-case scenarios would have prices drop BELOW where they should be.
This is what people in the industry call a "buying opportunity."
We tolerate this in the stock market.
We tolerate this in the energy market.
We even tolerate this in the agricultural markets, to some extent.
Why should the government make housing exempt from the boom/bust cycle?
What will happen if the government continues manipulating the market, and the younger generations are priced out forever?