Here's a nice little report on UK property owners.
Like in most Western countries — Australia or Canada probably the worst — the majority of the population has gone housing nuts. (Makes sense, when it's the most readily available store of value, the largest purchase most people ever make, and a convenient way to go 7x short the currency.)
"Nationwide, more homes have sold for less than they were bought for than at any time since 2018"
Prime central London prices have fallen 22 per cent since 2014, according to Savills. And even sellers who are sitting on gains can be biased by loss aversion, since they often anchor their sense of their home’s value from where it reached during the last peak.
Are we finally purging monetary premium out of housing?!
Meh:
Answering that question means grappling with a deep conviction that a home is something whose value never falls. The steady, inexorable appreciation of most people’s most valuable asset is a principle etched deep into the British psyche — a belief even wired into how the mind works. But that belief is sabotaging home sales. A sharp, fast reset is needed.
Nah, then the piece mostly veers into considering HOW to best negotiate with real estate agents and the importance of correct listing price. Blah-blah, boring
In June, her agent persuaded her to list the property for £625,000. Three months later, with just a handful of viewings and no offers, she switched agents and dropped the price by £50,000. She’s anxious that the long period on the market — and the price cut — has made the home less appealing to buyers
Oh well, at least we're openly considering that houses don't automatically and inevitably rise in (nominal) prices.
Psst: to answer the question, it's copium and selection bias merged with social desirability: nobody tells people that they overpaid, and all the incentives are stacked up for every actor (but the buyer, one hopes??) to want higher prices.
Can't get Archive to work today, sorry!