New home prices plunge!

Hot on the heels of the news that existing-home sales dropped in September by the biggest amount on record, we get news that new home prices dropped 9.7%! This is huge because as you all know they were going up by about the same amount for each of the last 5 years. Also, this drop happened while sales of new homes actually rose 5.3% from the month before. The explanation is that builders are now offering insane incentives to get people to close the deal. Still, sales are down 14.2% from September 2005. And the number of unsold homes sitting on the market are up 47%. All music to my ears...