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Tuesday, November 13, 2018

Why a Housing Cool-Off May Leave Consumers Unperturbed This Time - Bloomberg

Why a Housing Cool-Off May Leave Consumers Unperturbed This Time - Bloomberg: In a post-financial-crisis world, the phrase "housing market slowdown" has a ring of impending disaster.

But as the $220 trillion global housing market starts to cool off in some places against a backdrop of monetary policy normalization, economists at Eurizon SLJ Capital offer a reason for calm. Because price declines are hitting extremely expensive cities, they might not drag down consumption the way standard theory would predict. We summarize their research below