Again, there's not an excess of supply relative to demand or need. There's an excess of supply that people don't want at prices they can't afford. The actual ratio of people-to-housing is still at record lows, relative to both our recent past and that of our international peers.
Essentially, there's a fundamental mismatch between where the prices are and what our declining economy can support. But there's absolutely still a
shortage of housing - particularly of the type that people want at a price they can afford.