It is possible that prices would go down but that will be an incentive to rent instead of selling. So less houses on the market. That could keep the prices up. And no matter how low the price is, if people have no savings and no credit even one year worth of salary would be too much of a price.

The combination of all those factors could lead to a final state of a lot of houses owned by companies and a few extremely wealth people. Everybody else would be paying a rent.