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The housing slump is not (yet) a recession

Howard Gold
The housing slump is not (yet) a recession

While Wall Street has focused on trade, interest rates, and the midterm elections, a potentially bigger risk to the markets has gone almost unnoticed: Housing starts have slid, prices in some high-profile markets have weakened, and share prices of publicly traded homebuilders have plummeted. Home purchases have a multiplier effect on consumer spending, since they often generate further sales of furniture, appliances, electronics, and marble or granite kitchen counters. • Since January, when the total of new privately owned housing units started hit an 11-year high of 1,334,000 units (annualized), housing starts have fallen to 1.2 million annually in September, according to the U.S. Bureau of the Census.