"Aren't lower house prices more a symptom of the economy"...

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    "Aren't lower house prices more a symptom of the economy"
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    Is it?

    "By what mechanism will lower house prices cause economic recession?"
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    Wealth effect
    Negative equity
    Housing sector job losses


    I am sure there are plenty more reasons and I am not optimistic when the private sector debt is running twice the GDP. Speculating on property using the generous NG/CGT doesn't provide that many jobs relatively speaking.
 
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