[Bobdilan]

This is not good news. It's bad news if you bought at the height of the bubble. What it means for the rest of us is that the money we have is now worth more, it can buy more house for the same amount of money.

As Che stated, lower house prices means the economy is doing poorly It depends on where you are. If you are in California, or either coast, anywhere the bubble has really taken off, then you are in trouble.

The thing you have to realise, is that they are fewer of us, then there are of you. There will be less demand for houses just because they are less people in my generation then yours.

It's natural that the prices are finally coming down because they were not sustainable, and neither was this oversupply of houses. What is going to happen is that the prices are going to fall until they are brought in line with what they are actually worth.

Like I pointed out earlier, more home building means more home owning. Since more homes aren't being built, this is bad. True, more homebuilding results in more houses owned, if and only if the current supply of houses is less then the demand of houses.

If the current demand for houses is less then the supply, then construction will stop until the two come in line again.