We're blue in the face from repeating this, but housing is one of the most incentivized industries in the country. We've got low interest rates, the mortgage interest deduction, Florida's Save Our Homes law, downpayment assistance for low income buyers, etc. It's not stopping builders from demanding more. Here's a snippet from today's Wall Street Journal Online:

A bustling stock rally ground to a halt Tuesday following new signs that the housing market remains under heavy pressure.

New data from the National Association of Home Builders were particularly worrisome. The organization said on Tuesday that its November index of new, single-family homes fell to an all-time low of 9, down from 14 in October.

"Today's report shows that we are in a crisis situation," said NAHB Chairman Sandy Dunn, a home builder from West Virginia. "If there's any hope of turning this economy around, Congress and the (Bush) Administration need to focus on stabilizing housing."

Ms. Dunn said uncertainty about the economy has driven consumers from the housing market.

"It's going to take some major incentives to bring them back," she said. She argued that Congress should pass new economic stimulus legislation that includes new home-buying incentives.