You are ignoring the Buy To Let disaster.
Sure lots of people will sit tight. Which means estate agents go bust as do the paint sellers and carpet makers.
What about those getting divorced, dying or losing their jobs? How do they sit tight? They can't - so they sell - so defining the new valuation of your house.
Its a spiral just like a boom but in the opposite direction.
The BTL brigade are nursing negative equity as house valuations fall. Many of them will not be able to refinance without much higher costs which they will be unable to pass on to their tenants. Many were already making a negative monthly return but were enjoying annual capital appreciation. With this removed they have a stark choice:
Sell the portfolio and stop losing money every month, or,
Stick with losing money and hope the crash doesn't continue.
Rock and hard place.
WWW