Savings is for a down payment. Then you pay mortgages on the house and any savings are much better to keep (retirement, buffer, ..). If I were to save to buy my house (€800K) I'd certainly not be living in it before the kids move out, at which point I no longer need a house.
The price of a house on the market has a pretty simple formula: it's what two incomes can pay per month times the interest rate they expect over some horizon, and the expected monthly pyament of the principal (if any).
Where I live, I can stop paying back the loan when the loan is under 70% the valuation of the house, so it's then interest-only after that. And of course there are better uses of money than paying a mortgage: in recent history the stock market has been booming while my mortgage is under 1.5%. Whenever I have €1K lying around, I'd certainly not want to pay back 0.1% of my mortgage when I can save it instead.
The price of a house on the market has a pretty simple formula: it's what two incomes can pay per month times the interest rate they expect over some horizon, and the expected monthly pyament of the principal (if any).
Where I live, I can stop paying back the loan when the loan is under 70% the valuation of the house, so it's then interest-only after that. And of course there are better uses of money than paying a mortgage: in recent history the stock market has been booming while my mortgage is under 1.5%. Whenever I have €1K lying around, I'd certainly not want to pay back 0.1% of my mortgage when I can save it instead.