The U.S. May Already Be in a Recession: Will the Housing Market Collapse Again?

Abstract

The last time around, housing was largely to blame for the most prolonged, financial bloodbath in recent memory. The housing market’s meteoric rise over the past two-plus years, with soaring prices, bidding wars, and an influx of investors, has drawn plenty of parallels to that earlier ramp-up period. But this time the housing market won’t be the cause of any downturn. Most real estate experts do not think the home market is in a bubble or is a threat to the economy. But that doesn’re not a threat. However, there are far more buyers. There are farMore buyers in the market. “Housing leads the economy,” says the National Association of Home Builders.com Chief Economist Danielle Hale.