"Well, it’s contributing to slower growth. Housing actually only directly contributes to 6 percent of our total economy, but there are a lot of linkages to new construction of housing –- linkages to the lumber industry, the furniture industry, appliances, even trucking," says Dr. Walden, a professor of agricultural and resource economics.

"So when housing slumps, it’s not only a slump in that sector, but it can be a slump in a lot of sectors," he says.

"Now economists estimate that the current slowdown in the national housing market is actually shaving a full percentage point off of national economic growth, which is significant when typically national economic growth averages around 3 percent," he adds. "So it really is having an adverse effect right now on the national economy."