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the increasing property value is both benefitial as well as a loss. real estate boom caused by decreasing propert values causes inflow of income in the sector but there is a ceiling bubble which when hit causes the economy to crash. Now when there is increase in property rates, the investements will deacrese , its beneficial to maintain the balance in inflow of the credit in the sector but it aslo hampers growth of the sector.

If there is persistant acceleration in the property value, it might affect thenot only the investemnts but also lowering the standard of living index in the country as it happened in UK decade back. If there is continuous fall in value it might cause reiteration of US economy debacle like it happened recently fuelled by real estate boom

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Q: What does it mean for the economy when property values increase?
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