This doesn’t surprise me a bit. Selling a house around here (N. Florida) is a joke. There are several homes for sale in our neighborhood - they’ve been on the market for over a year. The few that have sold recently have gone far less than what was listed. The one up the street recently went for $60K less than what it sold for 2 years ago.
We have also noticed people just giving up and putting ‘for rent’ signs in their yards. I don’t like this. I don’t want our neighborhood turning into one filled with transients, poorly maintained rental properties and everything else that comes along with that.
Your government created the bubble. It sucks when they manipulate the markets and people come out on the losing end of the deal.