>> Assume you are not a home owner.
Even as home owner I want house price to fall.
We can put house owners into 2 main groups - owner occupier and BTL-investment type
Then within each group, we can further distinguish between those upgrading vs downgrading.
Any owner-occupier upgrading, will see his property price down but he will be benefitted by his next house (which costs more and fallen further) becoming cheaper in comparison e.g. he might get £50k less for his current house but also paying £100k less for bigger house he's moving to.
Similarly for BTL investors trying to expand their portfolio, can buy more houses at lower price.
However, those who are downsizing or coming out of BTL/investment property market, will see a net loss.
>> That's a rather selfish point of view.
>> People who have high mortgages will be impacted by falling prices as negative equity will make it difficult for them to move.
Whether it is selfish or not depends on from whose perspective you are looking at. It can be argued that those who already own properties are not willing to make it easy for FTBs. They would say it is selfish that who own houses are making it harder for them to buy by wishing an even higher price.
A small number of people who bought at peak price and willing to remortgage when price is fallng, may see negative equity. But that's not end of the world. Any market correction affects some people. But falling price would be better for majority of people in the long run.
If people spend less on housing, they are going to spend more on other entertainment which would drive the economy up. High house price is affecting lots of industries which rely on people having spare cash to have fun with. With current high house price, very few people are having spare cash for fun.
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