On top of people who need to sell due to the financial pressures, there will be fewer buyers overall. This will lead to more used inventory.
In my layman’s view of the economy, I’d think if inflation and employment remains high, and employers start tracking to inflation and continued interest rate hikes, that we could be in for a long slow build up with ever increasing interest rates (remember the eighties) before a major collapse happens.
My view is that the sooner the recession hits, the less painful and shorter it will be. But inflation is still extremely high and interest rates are still increasing and employment (other than tech) is still high. To me that is all ever increasing pressure that eventually spells impending doom but I hope I’m wrong! The sooner that pressure is relieved the less pain the world will go through.