It’s easy to say that. It’s tougher when you have neighbors who bought for 30% less than you. Humans are not always rational. You might be, but many aren’t.
To think that people can’t/won’t panic sell houses is just ignoring reality. Not as easy as doing the same with stocks, but it can happen. Just like hoards of people panic bought over the last couple of years.
Plus, a lot of people did buy their house as an investment. There are tons of people who thought that housing was going to double each year, including people on this sub.