The housing market seems to be weakest in California and the southwest, the northeast, and Florida. That’s a large part of the U.S. population, but it doesn’t necessarily mean that the country is headed for a recession in the next year. Think back to the early to mid 1990’s – The housing market was pretty bad in Southern California, and to a lesser extent in the Northeast, but the U.S. economy was still growing and producing lots of jobs.
In a large part of the U.S. that didn’t participate in housing price run-ups, the housing market is doing much better than we are.
Even in San Diego, where construction and real estate-related businesses may be in their own recession for the next several years, the overall economy may do OK. Lower housing prices aren’t all bad.
