USAToday.com is reporting that the luxury condo's and other projects are getting canceled and cut back as sales take a nose dive. Doesn't seem like a big deal until you realize that the linchpin of the United States continuing strong economy has been in a large part due to the stability and growth of the real estate industry. The idea is there is a finite amount of worthwhile land and so it value can only increase. This idea has been true to for several decades of growth.
Its too early to make noises and alarms about this, but its definitely something to keep an eye out on as it could be the first sign of a destabilize economy where high oil prices are hitting everyone in the wallet (except oil executives of course). The constant attempt by Republicans to spend like no tomorrow (to a 8 trillion dollar deficit) along with virtually no increase in wages while a strong increase in cost of living, as resulted in a squeeze on the middle class. A class that historically loved to spend their disposable income to excess but hasn't been able to in recent years.
Hopefully this is just a blip on the economic radar but a little concern is not a bad thing.
(source)
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