Several reports on homebuilders show the housing bubble is bursting. "A survey by the National Association of Home Builders found 62 percent of 406 builders are offering buyers incentives such as televisions or free heat for six months. Thirty-three percent are paying closing costs or fees. Twenty-five percent of builders say they are cutting prices, a move area builders try to avoid because it angers previous buyers."

"Rodney Arnold, a builder of several subdivisions in Cape Girardeau, said in the past he has offered buyers an incentive by paying part of the closing costs. 'A builder never wants to cut the price of a home,' Arnold said. 'So by giving incentives, it keeps the price of the home up.'"

"Central Ohio's housing market is going through the equivalent of a closeout sale as builders slice prices in hopes of luring back buyers. But whether a builder is cutting prices immediately or holding out until later, many observers agree the cost of a house will be dropping, discount or no discount."

"New-home sales in the region dropped 17.8 percent last year, with a 56.7 percent drop from late 2004 to fourth-quarter 2005, the biggest drop for a quarter since the homebuilding boom began in 2002. That has led to a slowdown in jobs related to the new-home market. It's more like a pinch than a heavy blow for the industry so far. 'I don't think anyone's in a panic mode,' said David Lucchetti."

"The cuts went deep at air-conditioning contractor Beutler Corp., which as a result of the housing downturn has laid off or lost to attrition 250 of its 1,500 workers, said president Rick Wylie. That figure includes 175 workers in Sacramento."

"'January's been pretty tough. We're struggling to stay even with last year,' said Harris Blickstein, COO of a furniture-store chain based in Sacramento. For years the retailer enjoyed the effects of a booming housing market, the large number of houses sold, their rising values and numerous home-equity loans being made. Now people don't feel as rich, Blickstein said."

"Construction is a big factor in the local economy and has been one of the strongest job sectors in the wake of the economic downturn at the start of this decade. In Yolo, Sacramento, El Dorado and Placer counties, construction accounts for 70,400 jobs, largely in homebuilding."

"'Sooner or later, when you keep increasing prices and land prices go up to reach the ceiling, there won't be enough people to buy your house,' said subcontractor Jay Fischer (who) has laid off 50 of his 150 workers."