The construction slowdown is in the news in California. "The Inland region's economy slowed faster than that of any area in the state over the past six months, an economist who studies the area said. Economist Keitaro Matsuda in San Francisco, said local job growth had slowed mostly because of the cooling housing market. 'Before, the Inland Empire had this tailwind from the housing market,' he said."

The Santa Rosa Press Democrat. "The construction industry, a major economic engine in Sonoma County, is scaling back home building as the housing market loses steam. Housing starts fell to a 10-year low in Sonoma County through the first half of this year as builders delay construction plans and cut prices."

"The slowdown this spring and summer marks a dramatic turnaround from last fall, when builders were constructing new homes at the fastest pace in six years. 'The velocity of sales has slowed. We haven't put a new foundation in the ground for a couple of months,' said George Casey, CEO of Christopherson Homes, the county's largest home builders."

"Overall, local construction companies have eliminated 600 jobs since the building boom peaked last October. Analysts warn there could be more job cuts ahead in the construction sector, which directly supports 14,500 jobs, or 7 percent of Sonoma County's work force."

"Permit drops have led to construction job losses in every housing downturn, said Ryan Ratcliff, an economist with the UCLA Anderson Forecast. 'Usually you see permits turn and then six to nine months later you see construction employment start to turn,' Ratcliff said."

"In Sonoma County, construction activity began to sink three months ago. Builders pulled 841 permits to put up homes and apartments in the first six months, down 46 percent from a year ago. It was the weakest six-month pace since 1996."

The LA Daily News. "The home-building sector received a pounding in the second quarter. And the hammering is going to continue in this quarter, too. 'If bad news came in torrents in the first quarter, the second quarter was a tidal wave,' analyst Steven East. 'We believe participants in this sector will look back and say this was the quarter that reality set in for both investors and management teams.'"

"Some of this visited Calabasas-based The Ryland Group. Orders plunged 39.4 percent to 3,023 units from the like period in 2005, the second-biggest decline for the sector. Ryland CEO Chad Dreier said that selling homes is now a challenge in nearly every market. 'While we knew that eventually there would be a slowdown in housing, this downturn happened quicker than expected,' he said."

"Sales declines are bigger in California. Weakness in the resale market is not going to help the new home market get out of its funk, either. 'In the months ahead we can expect to see continued volatility in the market as many homebuyers remain on the sidelines to ensure they won't be buying homes that could be in the middle of a downward turn in valuation,' Hanley Wood Market Intelligence said."

"Finally: E-mail from Happy Renter offers this observation on the observation of Jay Brinkmann, of the Mortgage Bankers Association, about the spike in foreclosure activity during the second quarter. Brinkmann: 'There is nothing in economic fundamentals in household creation or job creation that is looking toward any kind of meltdown in housing prices. I think we are just getting back to a more normal market.'"

"Happy Renter: 'Oh, yes! There is! Most people's incomes aren't going up, yet everything else that is necessary (food, gas, housing, medical) is going up.'"