The old line of needing more houses for a booming population is now negated even by the California Building Industry Association.

From the ContraCosta Time:
California’s 12-year run of home building gains will likely end in 2006, as developers pause to clear out excess inventory during the early part of the year, according to a trade group’s annual housing forecast….The first quarter in particular could promise some price relief, as home builders pony up concessions to slice their growing inventory levels, said Alan Nevin, CBIA chief economist.

Hey, I thought there was a housing shortage, and that demand for housing meant it could never go down 🙂