> But what's the point of it being worth $1.5m? Because now if you want to move, the house that you have to buy is worth proportionally more.
But if you move to a cheaper area, say because you now work from home, or for whatever reason you don't need to be in the expensive one anymore, the difference has also proportionately increased.
I also think the situation is crazy (specifically in France, where I live, too). But I don't see an easy way out. Regular people owe way too much to their banks to be able to accept a drastic decline in prices.
WFH won't last and prices won't decrease unless there's pressure to do so (less demand). There isn't going to be less demand unless 1. we're not having children and 2. the country keeps immigrants out. So it's a debatable decision. By moving out of major cities one could gain by not having to breathe the polluted air but then they lose on commuting costs and time wasted commuting, unless they work in agriculture where the pay is usually crap.
But if you move to a cheaper area, say because you now work from home, or for whatever reason you don't need to be in the expensive one anymore, the difference has also proportionately increased.
I also think the situation is crazy (specifically in France, where I live, too). But I don't see an easy way out. Regular people owe way too much to their banks to be able to accept a drastic decline in prices.