When disentangling the real effects of bank credit in the demand-supply dynamics of both the asset market and the real economy, it is disaggregate bank credit, which holds quantitatively important information. This is all the more relevant when persistent economic policy uncertainty dominates the demand-supply equilibrium in these markets. To examine this in the context of the international housing market, we develop an empirically testable framework and perform a panel VAR estimation for a unique quarterly dataset consisting of nine industrialized countries. We find that credit to the real economy and housing prices depict mutually reinforcing relationships. Moreover, we find that there is a negligible negative effect of credit to the asset market on housing prices in the short-run, and such effects are positive over the long-run. Alternatively, the effect of housing prices on credit to the asset market is positive in both the short- and long-run. Moreover, the dynamic interdependent effects of housing prices and credit to the asset market are more pronounced when economic policy uncertainty and the global financial crisis are respectively accounted for in our estimation. Finally, a battery of robustness checks confirms our predictions.