It is like asking "if you press the gas pedal harder, will your car go faster or slower". Of course people will say "faster", but then you say "got you! if the reason you pressed the gas is because you are climbing a slope, you are going slower".
Supply and demand are still useful concepts to understand prices in other markets, but the main insight is simple: that higher supply generally leads to lower prices given fixed demand and higher demand generally leads to higher prices given fixed supply.
Either way it doesn't matter bc housing isn't a commodity, and what Noah Smith said wasn't incorrect.