Yeah. Problem is, a lot of people don't. Eventually it affects everyone. A lot of these "customers" for new homes should never have been customers. And less customers means lower prices. The whole housing bubble was a, well, bubble. People had loands that could not possibly be manageable unless 1) the value continued to climb at a rapid rate or, 2) they won the lottery.
The prices have flattened (which is only phase one) and not that many people win the lottery.