This tweet from Stephanie Kelton, an economics professor at the University of Missouri–Kansas City, is almost too perfect.
3 people at the table next 2 me r talking #sequestration. All of them saying its "no big deal" because their condo prices are recovering.
— Stephanie Kelton (@deficitowl) March 3, 2013
There's quite a lot there.
First, there's the fact that nobody in the real world seems to think that
Beyond that, the idea of austerity vs. housing is great frame by which to debate the
For the moment, it seems like the tailwind from real estate (both in terms of construction jobs and the rising wealth effect) is solid enough such that the modest austerity from the sequestration won't put the US into recession.
As for where the housing market is at right now, see this great update from Calculated Risk >