Share this article!

Wharton real estate professor Fernando Ferreira doesn’t believe the U.S. housing market has entered a recession.

Home sales are falling in response to rising interest rates, but there’s still a mismatch of supply and demand, he said. That mismatch is at the core of the current U.S. housing crisis, and there’s no quick fix for it.

“I don’t think it’s in a recession yet. That’s a bit of a strong word,” Ferreira said to Wharton Business Daily on SiriusXM. “The housing market has a ton of problems — historical problems, recent problems, we can go over all of them. But I wouldn’t call it a recession.”

Ferreira, who is also a professor of business economics and public policy, said the slumping sales have pushed prices down, but housing is still extremely expensive for most Americans. The median sale price of a home in July was $403,800, down $10,000 from a month earlier, according to the National Association of Realtors.