However, as Harvard University's Martin Feldstein points out, if house prices rise, people feel richer and borrow and spend more.

ECONOMIST: Home ownership

Then if national prices were to rise by 4 percent, house prices everywhere would move by 4 percent, and we could almost dismiss default as a possibility.

FORBES: There Is No National Housing Market

Even when those inventories are worked off, house prices will probably rise little, if at all, in a low inflation or deflationary climate.

FORBES: The Chances Of A Double Dip

Thus, even if house prices do not plummet and interest rates do not rise, but both merely stabilise, the boost to consumer spending will surely fall away.

ECONOMIST: Economics focus

They made up one-fifth of all homeowners at the end of 2008, but that could soon rise to one in three if house prices keep declining as steeply as the central bank recently forecast, according to its recent annual assessment.

FORBES: Global Economy

Alternatively, if rents continue to rise at their current annual pace of 2.5%, house prices would need to remain flat for over ten years to bring America's ratio of house prices to rents back to its long-term norm.

ECONOMIST: Global house prices