"It all seems so obvious now..." (housing, percent, prices)

[Ten]

This is what happens when funny-money corrects:

Housing starts plunged to a 14-year low last month, falling 10.2 percent from August, and building permits fell 7.3 percent to the lowest level since 1995. Credit market tightening and increasingly skittish home buyers (for good reason) are likely to put more downward pressure on construction activity well into 2008.

From the Bloomberg report come these comments from Deutsche Bank economist Carl Ricadonna, "Housing continues to get worse and worse. The contraction will go on into at least the middle of next year. There are certainly going to be more rate cuts by the Fed."

]Moderator deleted

[CouponJack]

Its a good thing that housing starts are slowing. That was one of the major problems which got us in this mess (abundance of inventory). People need to watch if this is a continuing trend.

[walidm]

Economically speaking, abundance of inventory leads to lower prices.

Regulation; however, is a good thing, as the consumers are the ones who we are charged with educating and protecting through professional conduct and representation.

[CouponJack]

Exactly! that's what we have now. An abundance of inventory.

Finally, builders are wising up, slowing down, and realizing buyers are not (and will not be allowed to) overextend themselves....