Where is the U.S. Housing Market Headed?

Sales of new homes, which have struggled to increase from relatively low levels of a year ago, posted gains in May sales to their highest levels in six years.
BN-DJ947_COMPOS_G_20140624122402 Sales have been soft, in part, because builders have been slow to ramp up production. While inventories are still very low, they are up 16% from last year.BN-DJ972_NEWINV_G_20140624123243 Caught last year with a surge of demand and a shortage of supplies, builders boosted prices. As sales have slowed and builders have increased production, they’ve cut back on those price increases. Several executives have conceded that prices probably went up too fast last year, especially after the unexpected jump in mortgage rates that pinched affordability last summer.
via Five Takeaways: Where is the U.S. Housing Market Headed? – Real Time Economics – WSJ.

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