I would suggest it is a bit more complicated than that. And to be clear I am talking about your PPR. A house, as an asset, is a stream of future rental payments. If the market writes down the price of this asset you have to ask why? There is really only two things that detemrine the price:
- The expected real rents it will attract
- The discount rate applied to these rentals.
If the price has fallen because future real rents are going (expected) to be lower, you lose on the sale, but you are going to gain on the reduced rental payments in the future.
If the price has fallen because real interest rates are expected to be higher over the future then you lose on the sale, but you gain because you will earn an increased return on you capital from the now higher interest rates (or pay less in interest if you have a mortgage).
For extra credits, you can use the same logic to explain why an increase in house prices doesn't make you "wealthy" via your PPR.