I think deflation would couse that average house prices would fall. And those who put their lifesavings into a houses would lose the money they invested as their houses is worth less of what they invested into it.

Inflation will rise their prices and they will get more colored paperstripes when they sell. So they belive, that they will have more money as invested.

The problem which they don't understand is that Inflation also increases all other prices like food ect. and steal their purchasing power. Finally they will get more for their house when they sell it, but also have to pay more on the basic needed things. This is not really a winning situation.