Does the price of housing determine how well a country’s economy is performing?

As we have discussed in class,  the economic indicators are measured through market size, purchasing power,  growth, labor market and stability.  The article intrigued me because it discusses the IMF’s critical role as a watch dog in the international arena.  In particular, the article mentions 33 out of 52 countries in the IMF’s Global House Price Index displayed growth in home prices even when their economies were slowing down.  IMF cautions countries such as US that even though they are starting to show increase in the prices of market, it does not necessarily indicate an increase in their economy.  Home prices, rents, and incomes should progress together with the economy.  The article proves that countries share similar issues and economic theories. As we have learned in class, there are many factors that can affect a country’s economy, and demand versus resources are certainly one of them.

http://www.forbes.com/sites/kenrapoza/2014/06/12/imf-warns-global-housing-market-overheating-including-in-u-s/