Low house prices are good for people trying to get on the ladder. Otherwise I don’t think a depressed housing market helps the economy. Firstly rising property prices give the public a feel-good factor and they spend more freely. Most of the money for Brits deposits on Spanish property came from equity on their UK houses. They re-mortgaged and bought conservatories up to flash cars. The Spaniards did it too, my neighbours remortgaged and had an expensive heating system put in and bought two new cars. All that has stopped now…some borrowed to the hilt and now have no equity.
I am just happy that when my spanish home shot up about 500,000 more after the boom started that we didn’t mortgage it 😆