If by fucked you mean you aren't going to see 5% in 2025? Yeah, thats the most likely scenario. But I would argue that with tight inventory and assumed appreciation, is that percent that huge? Is an 8% loan fucked in it appreciates 8% in 4 years for example? I would also be selling that yes in the 7's you might feel fucked, but right now with so much uncertainty, you cannot rule out the possibility of a severe DP it the next two fed moves are upwards. Plus there are always some buyers that have to sell, high rates or not.
Antidotal story, but I know a gal whose parents got her a house, and she took care of them until the end, and sh put that house on the market like the week before Christmas (like a dumbass). I think her ask was $420, and she got a $385 offer, and held firm without countering. Her folks had bought the house maybe 3 years ago for $400K and she had put in new appliances and countertops and new roof (storm). So that $420K number seemed reasonable. If she got that same $385K offer today she would not only counter, but would be a lot more flexible negotiating. For her it's found money, but she is willing to capitulate on price. Now she's not the norm, but she is an example of a seller willing to capitulate on price to move the property. Her agent of course was pissed.