People were pent up in houses for far too long and then unable/unwilling to fly or stay in hotels because their fear of COVID was so strong.

The looming foreclosures must first satisfy the pent up appetites of the masses of anxious buyers before downward pressure is applied.

Also, most of these will trade PRE MARKET, as there is pent up demand. 

So I don't think lower rates will mean more inventroy, but it will mean more transaction volume, because we have pent up demand of people who want to move and had put their plans on ice because of rates.

But in Single Family, we have massive pent up demand, and most analyst's now agree that a rate move to just 6% would potentially have massive impact in "un-corking" pent up demand, meaning buyer-spree in SFH's and with that, prices ride that wave up, as does appreciation. 

We will definitely see some effect of all the pent up inventory that hits the market once things return to "normal", probably a bit of downward pressure on prices that will recover relatively quickly. 

I feel when the sentiment eases up on the market and the buyers come back into the market, the pent up demand that has been building all year will hit prices hard and competition will raise prices once again.

When supply chain straightens out, investors stop backing off investing, interest rates stay moderate; my next concern will be finding contractors once the economy comes back with pent up demand. 

Is buyer competition going to skyrocket due to pent up demand?

I think the pent-up demand and high prices of materials and labor for new construction will keep that from happening.