Although gross domestic product rose at an annual rate of 4.1%, economists see a red flag in the country’s economy in the form of the slowing down of the country’s housing market.
The slowing down of the US housing market is seen as an evidence of the economy’s slump. For a third quarter this year, residential investment continues to shrink. This is happening, on top of the issue on housing affordability across the country.
Lindsey Piegza, Stifel’s chief economist explained that home sales are a driving force of several parts of the economy. It pumps consumer confidence and boosts the pace of construction.
For several months now, several key indicators, including the housing market continues to point downward.
Jonathan Miller of Miller Samuel pointed out in a newsletter that the market has “crossed an affordability threshold.” Buying a market anywhere across the country is getting harder to accomplish that fewer Americans are able to successfully do so.
While several experts are concerned about the slump in the housing market, other economists are saying the housing data is not as reliable as others say it is. This is mainly because of its volatility and the data is often revised.