New-home construction plunges is good for housing, however...

Construction plungs is good for housing. The reason that builders continue to build before is US government continues to subside housing (which is foolish).

However, there are still lot of inventories. Lots of forclosures will come into the market. Housing price is still too high because government is still doing foolish things.

Also the cost of owning a house is rising. Interest rate is rising. Utility bills are rising. Repair costs are rising. Property tax is rising. The cost of refinance is rising.

On the other hand, People's salary is not moving higher. (many government agencies also refree salary increase for next two years). People are not finding jobs.

Any one who hopes that housing will soon move out of the bottom needs to review his view.