Housing Market is in a Recession

Daily Mail: Record-high housing prices in the US could collapse by up to 20 percent over the next year if a recession sparked by Joe Biden’s inflation takes hold, a top Wall Street economist has warned. Ian Shepherdson, a chief economist at Pantheon Macroeconomics, pointed out that home prices have already declined by about five percent from their peak in May and will continue to tumble. According to his previous work, there are now 40 percent more single-family homes available than four months ago. Prices for homes sank by 0.7 percent in August, but Shepherdson predicts a total decline of up to 20 percent by the middle of 2023 (Daily Mail).

Insider: However, they emphasized the current housing downturn won’t crash the rest of the US economy, as the market has fewer entrenched risks than during the mid-2000s housing bubble. Still, there are growing concerns about the sector. Inflation, which surged to a 40-year high in June and remained above 8% in August, has squeezed consumers’ budgets (Insider).