On Tuesday, Erin Burnett (CNN’s “Erin Burnett Out Front”) reported the forecast price of both new and existing housing is expected to rise substantially, especially in the western states. This was surprising because the announcement directly followed a warning from the Congressional Budget Office that the U.S. is about to enter another recession.
Recessions and increases in the price of housing usually do not go together. As many of us recall, the “last” recession may have been triggered by the collapse of the housing market. Of course, that depends upon when one believes the “last” recession started. Personally, I think it was about a decade ago, and it never ended. In fact, we’re still so deeply within it that I have sometimes been brash enough to call it a depression.
However, if we look at various sectors of our economy, we could come to the conclusion that there are, in fact, several different types of recession. For example, the stock market rebounded about a year ago. Auto manufacturers in the U.S. started turning huge profits, again. Kids who could play really well with computers in their dorm rooms became billionaires.
Working-class Americans could not find full-time, well-paying jobs. The middle class continued to experience house foreclosures. The poor remained poor. Shopping malls saw more stores close, while inner cities watched 99-cent stores proliferate. Yet, the price of housing is expected to increase...