| Comment | You are ignoring the fact that the value of properties in the 50s-early 90s was a fraction of what it is today. Mortgages were also smaller, way smaller. The risk thus was very small.
In the 70s the average property in Scotland was valued at 3k, in the 80s 15k, and in 1990 35k. Today it is 250K.
So obviously if the price of something you own is just 3k, and it goes down a 7%, it's a small change, or if it stagnates.
The problem now is that people have mortgages over 200k, with 2 people paying a chunk of their salary. If the house market crashes badly, the property are not the houses but the people paying them. |
|---|