Housing Slumps; U.S. Economy Catches Cold

It is not uncommon for people to catch cold during the fall and winter months, but it would appear the U.S. ecomony is also feeling a bit of a chill, and some experts say the recent slump in housing sales is to blame.

The U.S. Commerce Department reported that overall growth slipped to 1.6 percent during the last quarter–and that is the slowest it has been in three years, according to an article in Canada’s National Post reporting from Washington,D.C.

The paper says economists have zeroed in on housing sales as the primary culprit with prices falling the most in more than 30 years last month alone.

“We are feeling the effects of the housing bubble bursting and, while the ill wind is not pleasant, it is not likely to be long lasting,” Joel Naroff, president of Naroff Economic Advisors in Pennsylvania told the paper.

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Tags: advisors, commerce, department, economic, growth, housing, sales, slump