The drop in housing starts and permits is actually good news. It'll help the huge inventory of houses for sale go down. But the coming explosion of new condos hitting the market overshadows this bit of good news.
Condos started at the height of the housing boom will be hiking new supply this year. That's the last thing the condo market needs.
The U.S. finished 2007 with a supply of condos large enough to absorb 10 months of demand, the highest level since the National Association of Realtors began the tally in 1999.
Builders and condo owners will be taking a huge hit.