What happens to the economy when the housing market cools?
Last week we discussed the sectors which would be impacted by a housing decline. In this article we discuss the implications to the economy in a housing downturn. We have seen auction clearance rates dropping in most areas recently and with more rate rises anticipated, interest in the housing market is weakening. Consumer Spending There is a direct correlation between the housing market and consumer spending. Consumer spending levels will then have an effect on the economy. When house values …
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