I think that it has more to do with the enormous amount of new construction being built on every single possible piece of land that the developers can get thier hands on.

This is not also the first time that a housing cycle is running its course from boom to maturity. It is also more regional in its really bad parts. Midwest dropping steeply probably becuase of how fast the manufaturing jobs are vanishing from here.

CNN Money has the full report - but if you are in the business of buying and selling foreclosures, like yours truly, think about it - is it really that bad news? To me it looks like that customers are thinking twice about buying homes they possibly cannot afford if something drastic were to happen in their financial lives. May be, sanity is prevailing and they are looking for better value for their dollar.

Which, we real estate investors, are happy to provide.