[benj111]

How are you defining equity? Equity in the house?

If so your asset is going down and your mortgage payments are going up.

Equity is an asset with debt attached so if the debt is getting more expensive while the asset is declining in value, that isn't good.

This is good for people with lots of cash, as they don't need to borrow to buy, and they can now buy at a lower price. I would also say it's possibly good for people that can afford to take on the debt in the short term, as prices would be expected to rise, and interest rates fall in the long term.

I have a fixed rate mortgage so my asset is going down in value. But it depends whether o am going to be a net buyer or seller in the short term, whether this is good or bad. If I move up to a more expensive property then lower prices are good because that would tend to compress price differentials, but that would also work against me if I wanted to down size. So more generally we could say this is good for younger people who are generally net buyers of houses, and bad for older people who are generally net sellers.

[fileeditview]

Probably a translation problem but I mean equity as in cash you own.

[benj111]

Ok. In that case falling prices would be good.