New construction down = GOOD news!

Oftentimes a news story with statistics (CNNMoney's http://money.cnn.com/2009/11/18/real_estate/housing_starts_October/index.htm?section=money_latest) sounds much more doom and gloom than the reality of the data. For example, housing starts (aka new construction) is down 10.6% in October. Sounds bad BUT consider this: the ongoing slow down of new construction  (to about 25% of previous activity) is not necessarily a bad thng long term. There are still too many homes on the market so let's get rid of some of that excess! Once we do the long-term prognosis for the housing market will be much brighter for everyone.