You don’t need to be in the market to buy or sell a home to be affected by the cooling housing market. Economists, investors and the Federal Reserve are watching home building and home sales carefully because the sector has reached so far throughout the economy in recent years, lifting all manner of consumer spending and economic activity.

Even if prices don’t fall, even if there is no housing bubble about to pop, the cooling real estate market will be felt by many of those who may not be thinking about real estate prices. “It’s going to be very similar to the stock bubble, but even more so. Many who didn’t own stock lost their job when the market plummeted,” said Dean Baker, co-director of the Center for Economic and Policy Research, and one of those who believes housing prices have resulted in an asset bubble ripe for a correction.

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