In my little area, home sales are falling off a cliff. A year ago a house would be sold before the "For Sale" sign could be installed. Now they sit on the market for months. I'm not sure exactly what that means, but it means something.
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Could be a number of factors but it is often tied to affordability along with future expectations. Many point to rising prices as affecting affordability. Job prospects also affect it and gets overlooked.
I think interest rates are a big deal. Once the interest rates got jacked up, a lot of people couldn't afford to take on the higher payments and left the market.
Certainly affects the affordability especially if wages arent keeping pace. This is why the Fed's view on wage inflation and the Phillip's Curve is wrong.