Just last week,the Commerce Department reported an unexpected drop in December in the number of housing starts by builders.

VOA: special.2011.01.24

Last week saw positive U.S.economic news, with increases in home sales and housing prices, a jump in manufacturing activity, a drop in new jobless claims, and a new growth figure showing the economy shrinking far less than had been anticipated.

VOA: standard.2009.08.02

If anyone was in a position to understand the consequences of a sharp drop in housing prices, it was the Fed.

FORBES: And Deliver Us From Systemic Risk: The Fed Transcripts

A. Gary Shilling says it will take another 20% drop in housing prices to bring them in line with their historical trend.

FORBES: Housing Bottom Comes When People Swear Off Houses

China simply can't afford a sharp drop in housing prices because it will affect investment, which will in turn damp economic growth, Mr. Ren says.

WSJ: Outspoken Real-Estate Executive Makes Few Friends Among Public