This may be a stupid question, but why are rising house prices a plus for the economy?
Don't higher prices make it more difficult to sell houses? In other words, unless rising house prices are accompanied by a concomitant increase in income (and an increase in the consumer's willingness to spend), aren't higher prices detrimental to economic growth?
Don't higher prices make it more difficult to sell houses? In other words, unless rising house prices are accompanied by a concomitant increase in income (and an increase in the consumer's willingness to spend), aren't higher prices detrimental to economic growth?