During Nov and Dec of last year, national housing starts dropped below 180,000 units. The average over the past seven years, beginning in 2002, has been 223,000 units. Be prepared for this to be the new normal level for quite some time, at least through 2010. In fact, it may well turn out that 180,000 units would be more than acceptable given what is transpiring in the overall economy.

{People stopped shopping for (new) real estate and started worrying about their finances in the fourth quarter of last year. This change in thinking was initiated by September's nosedive in stock market values. It is an unfortunate corollary of cycles that a decline in one asset class rarely happens in isolation. It is usually accompanied by declines in others as well. Hence, home prices fall at the same time as equity prices in a generalized slowdown.}

I'm really no expert on new home sales but tell me, isn't this a good thing for the resale market, or am I missing something? Perhaps builder inflexibility in pricing has had a stronger affect than anticipated.

Yes, I know I'm simplifying the whole thing. But it's because I'm looking for some agent level input instead of the usual industry "corporate lineage".

Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.