These should be happy times for the housing industry. The market is booming, with more people working at higher pay, and with the large millennial generation reaching prime home buying age.
Home prices haven't declined nationally, at least based on the most commonly followed indexes. However, their rate of growth has declined, and more and more home sellers are finding they need to reduce asking prices to discover a buyer.
Given how fundamental housing is to the wider economy -- it is the largest driver of both wealth and indebtedness for the majority of households, and its changes have regularly been significant factors in past booms and busts -- this recession is not something to be taken lightly for anybody hoping the good times will last.