Canada

If you need to move, the house that you need to move to will now be half price so you didn't lose anything with your own house going half price. If anything you win by not having to pay as much taxes.

This part is incorrect. If you buy a $1MM home with a $200K down payment, then you have a $800K debt. If you sell at $500K, then you still owe $300K and will declare bankruptcy and need to start saving for 7 years (?) for that bankruptcy to fall off your credit history to be able to get a new mortgage again.

This is the problem some people are facing now. They bought at the peak, with a variable rate mortgage, and are now underwater on their house and can't afford the payments that have literally tripled. This will get worse in the next ~3½ years as fixed rate mortgages signed before/at the peak of the market come due for renewal, if interest rates remain this high.

Housing prices going down absolutely kills people's wealth. Which is a huge problem since this means half the population is selfishly benefiting from maintaining high real estate prices.