5 Certainty equivalence applies to linear-quadratic frameworks. The central bank is assumed to have a zone  quadratic loss function (i.e., it seeks to minimize inflation from the target and cares equally about deviations above and below the target), the model is linear and shocks are additive (i.e., they do not change the underlying structure of the economy).
Empirical studies for the United States and other OECD countries instead indicate that real estate markets and macroeconomic developments are closely interlinked. And in the event of a recession that extends beyond the real estate sector or even of a general financial crisis, cumulated losses could considerably impair banks’ internal capital adequacy.