Credit is tightened.  Home loans are hard to get.  Refinancing is nearly impossible.  Construction loans are gone.  What a big mess the building environment is in.  Everything that started the downturn must be stopped to get out of the downturn.  The subdivisions and condo towers with heavy risk generally were not followed by building with non risky projects.  Once the risky developments stopped and were halted, no one would dare fund any projects for fear of any project going back to the bank.  Once the banks realize that current proposed projects are good projects, they will start to loan again.

Which banks will take some risk once again and fund a developer though?  Will it take watching the small investment groups with cash to make the banks see that residential and commercial construction are not completely dead?  One of the main economy starters is building, as that signals a lot of other industries that the country is in good investment shape.