If you were building widgets and the market for widgets dropped would you:
a. Stop making widgets and take in zero revenue so that supply would work its way out and order would be restored to the marketplace
OR
b. Cut your prices to undercut the next guy, get him out of business so that you can have a larger percentage of a smaller pie, make payroll and survive the next few years.
I don’t think they will stop building houses, so most will choose b.
