3 ms·

For people who only own the house they live in - they are not likely to sell it, so its value going down is of less concern. Yes, perhaps they can borrow a bit

by llimos 4y ago

For people who only own the house they live in - they are not likely to sell it, so its value going down is of less concern. Yes, perhaps they can borrow a bit less against it but again, not such a major concern. They are presumably thinking of their children (who these days can only buy a house with the help of the Bank of Mum and Dad), and the wider community. And themselves too, should they need to upsize. It's not as simple as value up = good, value down = bad.

maratc 4y ago
> they are not likely to sell it They might like to sell it (and buy another one) if they want a bigger house (e.g. when they have more kids), or a smaller house (e.g. when the kids have left the nest). Selling their house and buying another one in a more open market (not having such limits on buyers) would mean finding the money to pay for a difference between the lower prices on the limited market and higher prices on unlimited markets.