Home Building Continues

Despite Case-Shiller showing a 12.1% rise in home prices for the year ending 4/13, it’s probably the end of big price increases. The recent jump in mortgage rates (which reduces demand) and the first sustained month-over-month increase in housing inventories (which increases supply) will moderate future price rises. But probably not new residential construction as the recent interest rate spike has added just $92/month to a median-priced new house.