If the extraordinary and unpredictable haven’t completely crushed the housing market, the conventional and cyclical may yet finish the job.
Much has been made of the popping of the real estate asset bubble and the entrenchment of the credit crunch.
But little attention has been paid to what a recession and accompanying spike in unemployment could do to a housing market already stricken by faltering sales, sinking prices, high interest rates and soaring foreclosures.
And the timing couldn’t be worse.
“We're now looking at a housing market that's made a lot of adjustment and people are wondering where is the turning point,” says Nigel Gault, chief US economist at Global Insight. “But we're also now at a point now where the broader economy is slowing down and unemployment is rising. The broader economy couldn’t hold up indefinitely as housing was plunging.”
And that leads to our Fast Money Reader Poll.
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