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this post was submitted on 14 May 2025
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This concept is simply false.
If my house price fell by 50%, I would owe more on my mortgage than the house is worth.
This would affect me negatively in multiple ways, not the least of which may mean me losing my home as the bank would not want to renew my mortgage.
I agree that housing prices need to fall, and actually by more than 50% but it needs to happen over time or it will literally crash the entire economy.