08/31/2022 04:30 AM EDT
That’s a big deal because spending on housing accounts for as much as 18 percent of GDP, and the sector typically leads recoveries. So, even as the Biden administration touts the strength of the labor market and consumer spending holds up, a prolonged downturn in the housing market could deepen any potential recession on the horizon for the U.S. economy.
A Redfin “for sale” sign stands in front of a house on Oct. 28, 2020, in Seattle, Wash. | Elaine Thompson/AP Photo “House prices were elevated going into this monetary policy change, and this is a big interest rate shock we’re seeing,” said Brian Coulton, chief economist at Fitch Ratings. “We’re heading into a monetary-tightening-driven slowdown, and housing is going to be affected by that more than the economy overall.”
“Nobody knows how much real estate prices — not just in the U.S., but globally — were increased by quantitative easing,” Coulton said. “But I think there’s a pretty strong consensus that QE did boost asset prices, and real estate prices in particular, and now we’re going into the opposite of that, and nobody has a particularly good model of what that will look like.”
We’re already in a recession. It’s not rocket science, just look at the prices of EVERYTHING, and have you seen the stock market Such a puff piece..
Until consumer spending cools Job openings tank Unemployment balloons There is no recession. Those metrics are the best they've ever been, actually Sorry, GQP
And another. 'Goldman Sachs economists predicted that home price growth would “slow sharply in the next couple quarters” and fall to 0 percent in 2023.'
Love this idea that less homes being built will drive prices down. Has never happened in human history.
We have been in a recession
We ARE in a recession, even though the Marxist dictionary the left wrote says we aren't.
We’re in recession
Politico, I know your a 'news' outlet and all so I did the journalist part for you. We are already in a recession. Two consecutive quarters of negative GDP is a recession. Your welcome.
Politico trying to change the definition of recession
We're already in a recession
Headed? Brother we are already there... we are heading to economic collapse. WAKE UP!!!
Time to panic