[Beldin]

> I do. That's how housing works in Japan - you buy a house to live in, not to save money or invest

Something I don't understand: if there is real deflation, your buying power increases if you wait. In this case: wait a year, get a nicer house for the same price, or pay significantly less for the current house. So even if you're not buying the house as an investment, waiting would improve your situation as a buyer. The more you wait, the better for you.

How do you ever get to actually buying a house in such circumstances?

[danenania]

The same reason you ever get to actually buying a computer, tv, or smartphone even though you know they'll keep going down in price if you wait.