Economy vs Housing Market

Three economists MarketWatch spoke to said that unless the job market takes a sharp negative turn and many people start losing their jobs, a housing-market crash is not in the cards, and home prices aren't going to fall precipitously. In fact, depending on its severity, a recession could even push home prices upward.

The U.S. economy is facing concerns about a potential recession, evidenced by factors like slowing job growth, stock market declines, and a decrease in consumer spending. While the unemployment rate remains relatively low at 4.2%, recent job reports show fewer job gains than expected. Job losses have been particularly pronounced in the tech and federal sectors, with over 400,000 workers losing their jobs in the first few months of 2025. 

Tech and Federal Sector Job Losses:

Significant layoffs have been reported in the tech and federal sectors, indicating a potential shift in the job market landscape. 

Credit Card Debt and Late Payments:

Rising credit card debt and increased late car payments are further indications of economic strain on households. 

Consumer Spending Decline: 

Data suggests that consumer spending has decreased, which is a significant indicator of economic activity as consumer spending accounts for a large portion of the U.S. economy. 

Stock Market Concerns: 

The S&P 500 has experienced a pullback, and share prices of major tech companies have also decreased, raising concerns about investor sentiment and the overall health of the economy. 

Slowing Job Growth: 

Data indicates that the average number of jobs created per month has been declining, suggesting a weakening job market.