NO, morons, it was just too cold to shop for house, give it time to warm up and them watch out
No moron, if it wasn't too cold to shop for exisiting homes then it wasn't to cold to shop for newly constucted homes. The drop has to do with market conditions in that buyers aren't willing to pay the premium on new homes when there are so many bargains on exisiting homes due to a significant increase in inventory. To save your the trouble of asking, why the premium on new homes? Partly because of increased construction costs due to Katrina et al. and Iraq. The biggest factor, from my perspective, is that builders and developers have overpaid for the land to build on and as a result, they can't drop the price of newly constructed houses all that much and still make a profit.