People treat their house as a retirement fund, or just an investment. They won't sell at a loss. If prices go down they just won't sell, which would also make it impossible for bank's to sell mortgages to people buying. Buyers can't buy if there are no sellers. People have to keep buying houses forever or the banking system will fail.
>>They won't sell at a loss. If prices go down they just won't sell,
This is absolutely false. Many people have sold at a lost over the years for many reason including job relocation, family issues, bankruptcy, etc et etc
That said Pricing going down != loss, for example I bought my current home 5 years ago, I bought it below market value, and after 5 years of value increases prices would have to drop more than 20% for me to sell it for less than I paid for it, and much more to "take a loss" if you calculate profit / loss properly factoring the value of shelter provided (which no one does)
>>People treat their house as a retirement fund, or just an investment.
