Housing always gets a lot of play in the media, whether it’s down in the dumps or soaring into the stratosphere, because this sector has a key role in the economy. You might be surprised to learn that existing home sales are just as important for the economy as newly constructed homes!
Now that problems with mortgage markets and foreclosures have moved to the front burner of the economic stove, you will see how home sales and house prices fit in. A sharp decline in housing prices was the straw on the camel’s back that caused Wall Street and economies around the world to come crashing down. Now you’ll know why!