Are Your Housing Numbers As Cold As The Weather

The housing market in many parts of the country can't catch a break. Check your local building department to see if the number of permits applied for has dropped in your town or county.  If your building permit numbers are continuing to drop, this can be considered a good gauge of the temperature of your local real estate market.  Builders have to apply for permits before they can build.  If a lot of building is expected, then the permit numbers will rise.  

It looks like the cold Paradise temperatures are as cold as our Paradise California real estate market.

This troubles me, since the data shows that home values are still dropping in my area.  With construction down sharply, builders are quick to respond to the market changes by curtailing building before home values fall.

The sub-prime meltdown has had a tremendous effect on regular homebuyers as banks have tightened up their lending requirements.  So, it could be harder for people to qualify for mortgages leaving unsold homes on the market even longer. 

Plus, if the sub-prime meltdown continues and people can't make their mortgage payments and go into foreclosure, demand will fall even further.  What's your take on your local market?