NAHB Sees Prices Winding Down

This from theNational Association of Home Builders:

“The most rapid increases in home prices have been occurring in markets where demand is particularly strong and supply constraints are especially difficult because of a shortage of land and excessive growth controls or moratoria,” said NAHB Chief Economist David Seiders.

“While the fundamentals for housing will remain relatively strong over the coming period, we believe that these numbers are unsustainable and that rates of house price appreciation will gradually head back into their historic range,” Seiders added.

Citing findings from the most recent NAHB/Wells Fargo Housing Opportunity Index for the second quarter of 2005, Seiders said that there is already good evidence that the eroding affordability of housing in hot markets in California and other parts of the country will be taking some of the steam out of sales activity before long.

— The Boy in the Big Housing Bubble