If the housing market crashed tomorrow, and my house lost 90% of its value... It's still my house, nothing's changed. Generally speaking, the reason you sell your house, is to buy a house. So if the market crashes, as long as my house's value crashes the same amount as everyone else's, I'm still good.
As long as my house maintains enough value that damaging or harming it is costly enough that it puts the perpatrators in prison, and thus discourage such from happening, the rest is... meaningless. I will always need shelter, so I cannot sell my house to gain money, no matter how much money it is worth, because I will need to then spend that money on a similarly overpriced lodging.
In fact, thanks to inheritance taxes and municipal taxes adjusted for house "value", a housing market crash would actually HELP me financially: I'd pay less taxes now, and either me, or my co-signer, wouldn't need to pay off a huge tax bill on one of our deaths from the cap-gains when it flows through inheritance-wise.
As a house-owner... I use my house as a house.
If the housing market crashed tomorrow, and my house lost 90% of its value... It's still my house, nothing's changed. Generally speaking, the reason you sell your house, is to buy a house. So if the market crashes, as long as my house's value crashes the same amount as everyone else's, I'm still good.
As long as my house maintains enough value that damaging or harming it is costly enough that it puts the perpatrators in prison, and thus discourage such from happening, the rest is... meaningless. I will always need shelter, so I cannot sell my house to gain money, no matter how much money it is worth, because I will need to then spend that money on a similarly overpriced lodging.
In fact, thanks to inheritance taxes and municipal taxes adjusted for house "value", a housing market crash would actually HELP me financially: I'd pay less taxes now, and either me, or my co-signer, wouldn't need to pay off a huge tax bill on one of our deaths from the cap-gains when it flows through inheritance-wise.
No, something would change: Your taxes and insurance costs would drop substantially.