When rates are up, fewer borrow and try to buy, it becomes a buyer's market as sales slow down, homes are harder to sell.While supply and demand try to move to a balanced market, price and supply and price and demand also move to an equilibrium any fluctuation in interest rates that hold for a significant period will then move price and the market adjusts.

Property prices fluctuate everywhere, in some areas thou, prices remain mostly flat or very close to it. 

In a resort area, demand and prices also fluctuate with the seasons.

Rents in Decatur didn't fluctuate that much last year.

I realize RE valuations in the future certainly can fluctuate, if you look at a 100 year period in the past, history tells us that RE is a solid investment, as well as the stock market.

One question though, it appears to me that for a buy-and-hold investor, inflation and fluctuating market demand are not all bad.

So smart investors with dollars can make a huge gain on the currency fluctuations. 

They should be taking an approach that produces cash flow to ride them through market fluctuations.

Permitting can take forever depending upon your area, material/appliance costs & availability have been fluctuating, and you'll likely need some good protection depending upon where you decide to build.Great news is that it's still pretty affordable and looks like a great alternative to a standard home.

Prices there fluctuate A LOT based on subdivision.