If Home Prices Fall, Will Stocks Follow?

Analysts predict home prices will decline over the next year. But what does that mean for the stock market?

tiny wooden houses with magnifying glass on charts
(Image credit: Getty Images)

Morgan Stanley recently said that it expects U.S. home prices to drop by 7% between now and December 2023. That might not seem like a lot, but if its prediction comes true, it would be the second-largest decline in housing prices since the Great Depression.

That's not going to be good for the stock market. Here's why.

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Will Ashworth
Contributing Writer, Kiplinger.com

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.