Was it? I thought the original argument was mostly about how interest rates affect housing prices. The particular bit you quoted -- > If they fall to 5%, the v

Was it? I thought the original argument was mostly about how interest rates affect housing prices. The particular bit you quoted -- > If they fall to 5%, the value of that same stream of flowers doubles to £2,000 -- and asked "how would that work?" about, wasn't about how buying and selling houses affects the prices or rates-of-return of other assets, it was about how prevailing interest rates affect the prices of houses. Which is what my comment addressed. Incidentally, it's very rare to "trade a house for another house". You buy houses for money, and sell houses for money. (You often do those two things together, but often the house you buy is quite different in price from the house you sell, and in any case the buyer and the seller are different people, so this still isn't equivalent to trading one house for another.) This isn't just nitpickery; it's because houses are bought and sold for money that could be used for other things that their prices can interact with the prices of other things.