> But who is going to build houses where house prices are declining? The private market certainly wont. Of course the private market will, if it still can make

> But who is going to build houses where house prices are declining? The private market certainly wont. Of course the private market will, if it still can make a buck. Can it buy land, buy materials, employ builders, sell a completed house, and come out ahead? If yes, then houses will be built by the private market. They may wish they got last year's price for the new house, but if they make money with this year's price, they will still build.