Hammer Time! Aka, can’t touch this … housing construction report.
Construction of new homes surged in March to the highest since 2006, just after the peak of the house price bubble in 2005.
There is a critical shortage of homes for sale, even with skyrocketing prices.
When home price growth hit a peak in 2005, there was a rapid supply response in both construction and existing homes hitting the market. Today, we have a have even faster home price growth, but the lowest available inventory. But 1-unit structures started is only at December 2006 levels.