Not sure what the market is like where you life, but no homeowner near me is “taking a loss” unless they bought 6 months ago. The types of people who buy houses to flip them in this way are parasites who deserve what they get.

Most homeowners wouldn’t really suffer a ‘loss’ if the housing market crashed. Okay they would lose 10%, 20%, 30%, but their next place would be roughly the same percentage cheaper. If they essentially swap one house for another, they can still afford a roughly equivalent house, all things being equal.

Those who downsize or could have reaped the previous increase as cash (because it’s a second or third home that they did not need to live in) might lose out. Pity for the first group. Little sympathy for the latter.

Edit: meant to add: those single property homeowners would still find out they were effectively shafted by the bank for borrowing far more than their first house was worth. But people with mortgages are being shafted, anyway. One big factor in those inflated prices is the competition with buy-to-let landlords, who are financed by imperialist banks.