> So it's possible that homes losing their value means owners lose savings but newcomers still can't enter the home ownership virtuous cycle. if a house is che

> So it's possible that homes losing their value means owners lose savings but newcomers still can't enter the home ownership virtuous cycle. if a house is cheap, but is still valuable (as new owners _want_ to buy because it's worth it while it's cheap), then this means it's a mis-pricing. And mis-pricing means that any investing entity will want to buy as well. In aggregate, this _should_ push the price back to the correct equilibrium. Therefore, housing being expensive today is a reflection of how many people value it high. It might also indicate that the reason it was cheap before was a mispricing, and those who got in early was merely lucky.