People dont lose anything until they sell.
Most people aren’t selling. So they haven’t lost.
And how would you limit the effect if housing dropped for the many other reasons prices drop?? You don’t.
Most people aren’t selling. So they haven’t lost.
And how would you limit the effect if housing dropped for the many other reasons prices drop?? You don’t.
This is the big problem the government has: it is very difficult to unwind this mess through policy without triggering a cascade. Likely it will come eventually, they just want to ensure it’s not their party in office when the shoe finally drops.
Not quite true. It would be truer if they have no debt.
But having a large debt, and negative equity, makes a family very vulnerable economically.