$400,000 is insane. You can buy a house every year.
I like AIG to $40 by year-end as a result of these moves.
New home starts are not always an accurate gauge of the overall economy. Many are built on spec and not necessarily sold in the near term. I sell homes in the NY area, mostly re-sales. My colleagues are seeing an increase in sales, not major, but a noticeable increase. We are moving in the right direction.