Subprime mortgages weighed down Wall Street’s balance sheets, Congress rejected the $700 billion financial bailout package and the stock market responded with the single biggest point drop in history. It’s not pretty out there.

You don’t have to be an economist to know that housing prices are still dropping across the country, however the real estate crunch is showing its face in more ways than just rising foreclosures and falling home values. These real estate waves could impact everyone from vacation home buyers, fractional ownership projects and even destination clubs which often aim to buy homes in the newest and most luxurious developments. Here’s a look at the latest impact from the financial crisis:

• Developers are pulling back on project commitments. Last week Morgans Hotel Group asked its development partner Boyd Gaming to refund a $30 million deposit that was to be used for developing Mondrian and Delano hotels in the Las Vegas Echelon, a hotel and gaming megaresort. Morgans Hotel Group also pulled a promised $41 million out of the venture and no longer has to guarantee the project’s construction loan, which is not yet secured. Construction on the Echelon, slated to kick off last summer, may not begin until well into 2009. Even overseas projects are entering a period of construction caution. Steve Case’s Cacique development in Costa Rica was supposed to begin construction in January but the start date has been pushed back 12 to 18 months. A spokesman for the project said it will go forward but, “this is not the right time to launch it.”

• Owners are suing developers from New York to south Florida to Las Vegas. Two buyers at New York’s famed Plaza Hotel have filed lawsuits seeking the return of multi-million dollar deposits (not to be outdone, the Plaza’s developer El-Ad Properties has filed a countersuit against one buyer calling his lawsuit “a sham”). Owners at a Las Vegas condominium that was accused of operating an illegal condo-hotel are now suing the developer and operator, wondering just where some $5.9 million in homeowners’ association dues went. Industry watchers expect only more buyer lawsuits in areas were developers were especially aggressive in building.

• In a telling sign of the times, Overstock.com added real estate listings. The surplus goods hawker, best known as a place to find a good deal on electronic equipment, luggage and even furniture, added real estate to its wares this spring and beefed up the more than three million listings with home auctions last month. The timeshare category includes a handful of fractional and vacation club listings. Units at the Four Seasons Resort Aviara are listed from $33,900 to $51,900. There are also listings at the Four Seasons Troon North in Scottsdale, as well as several listings from Marriott Vacation Club and Westin in other resort areas in California.

Readers, how is the economy impacting your real estate holdings? Are you waiting on the sidelines to buy a second home? Are you trying to sell a vacation home now? Weigh in below.