Housing Market Threatens U.S. Recovery as Sales Slide Resumes

Lower prices, fewer home sales and a drop in residential construction will sap consumer spending that accounts for about 70 percent of the world’s largest economy, according to Woodley Park’s DeKaser.

“There’s a tight relationship between home sales and outlays on furniture, appliances and building materials,” he said. “We’ve already seen some pullback on housing-related items because of the drop in home construction.”