Real estate is the most popular economic activity prevailing in United States. The role of real estate in the total US economy is not negligible. It contributes 10% of the total output coming from US market. A declination in real estate will surely affect job opportunities bringing unemployment in the country. When real estate sales decline, the price of real estate also falls. This reduces the house values when it is bought or sold. As a result of this, consumer spending as a whole declined. Since US economy is greatly dependant on consumption by people, such a reduction in spending will affect the total balance in US economy.