The signs are everywhere that the housing market is slowing. True to form, media outlets and pundits are pulling the usual fire alarms, but in this piece from Bloomberg via Yahoo Finance, cooler heads prevail.
Economists across the board find that the looming housing crisis has been blown far out of proportion.
In a note to clients, Credit Suisse wrote, “We are not optimistic on housing, but the level of concern has become excessive,” citing accelerating income growth and low vacancy rates.
“The most likely scenario for housing is a soft landing, not a recessionary slowdown. With fiscal stimulus and a strong labor market boosting growth, the Fed should take comfort that rate hikes have traction slowing part of the economy. Rather than cause a recession, some managed weakness in housing may actually prolong the current recovery,” according to Credit Suisse.
