Supply Of New Houses At 43-1/2 Year Low

We spotted this statistic today -

"The market for new homes is being squeezed by competition from previously owned homes and a deluge of foreclosed properties, even though inventories of new houses are at a 43-1/2 year low."

So whats the summary here?

1. Supply of new houses is low.
2. Availability of previously owned homes is high
3. Net effect - Prices are going down.

Statistics Source: Reuters