The U.S. housing market continues to tank.
The Dept of Housing and Urban Development (HUD) released the dismal news that privately-owned housing starts last month, April, were 10.6% below March, and 23.9% below the same time last year, April 2010.
The decline in new housing construction is due to so many homes being underwater and in foreclosure.
Supply and demand.
According to data from the real estate information company Zillow, as many as 1 of every 4 homes in America have negative equity, that is, the mortgage owed on the house is more than what the house is worth.
All of which has a depressing effect on home prices: Average home prices in the U.S. are down 8% from a year ago and are falling at about 1% every month.
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