How are you calculating the value it had when “we” bought it

Literally how much you were willing to pay. That's it's. (Technically also how much the previous owner/builder was willing to sell for; but that's also how much they would pay in an indirect sense)

if you reduce prices

And if prices reduce on their own? I've sold for less than purchase twice. It sucks. But I could have rented and not accepted that risk.

and some will get killed.

If you get killed, it's because you tried to invest in something that shouldn't be an investment?

You know who really gets killed? People who buy a home, and then that home has major defaults, and the repairs are 50% of the purchase price 5 years in, and insurance doesn't pay because it's a building fault, and the builders down pay because they rotate companies every year, and maybe you'll be able to sue the city who neglected their inspection duties or the insurance of the builders and architects but that file is still ongoing 4 years later, and even if it is successful will maxed at an amount that will only cover 30% of the work.

But that's a risk of home ownership, and I could have rented to avoid those risks.