I sold my house and am now renting. The market is going to decline. I am betting on it.

As far as the article goes, what do you think happened when the interest rates skyrocketed? The interest rates were double digit lower in 1976 than in 1980. In 1980, real estate was stagnant. Cash buyers ruled the market and prices had declined steeply. The market has a history of going lower after favorable market conditions. It's usually caused by an economic depression and/or interest rates that skyrocket. The current economy is being held up by illusory means, which makes a crash inevitable. The government will do its best to stop the dam from bursting, but our current national debt trajectory can't be sustained without a correction.

As far as the implications of interest rates rising, as you probably know the markets are tied to income levels and affordability. Therefore, if a person with the median income can't afford a property at xx higher interest rate, then the market must price the house lower. It's not as if you're stuck with an xx interest rate forever. You can refinance as soon as rates drop again. Either that or buy with cash or pay it off at lightning speed.

I like real estate as a long-term play. People that rode out the 1970s and 1980s interest rate hike ended up with massive appreciation once the market stabilized. I don't like the 5 year outlook of the current market. The probability of a market decline is very high and it could very well be a catastrophic decline. However, if you can ride out the storm, then you'll get a payday eventually.