Housing didn’t unlock. It just froze.

Home prices stalling sounds like relief.
But for recent buyers, it flipped them underwater.

1.1M homeowners now owe more than their house is worth (+60% YoY)

That doesn’t create sellers.
It traps them.

Mechanism:

• Low down payments → thin equity
• Small price drops → negative equity
• Negative equity → can’t sell without cash
• Can’t sell → listings don’t appear

Result:
Supply stays constrained even as demand weakens.

You don’t get a housing reset.
You get a housing freeze.