Real estate's March report card

Guest perspective: Disconnect emerges between housing supply, demand

Housing starts remain high despite slower sales and traffic (as measured by the National Association of Home Builders’ Housing Market Index). The index has returned to more normal levels, as shown in blue below, yet starts (in red) have stayed relatively flat.

We would like to believe starts will slow down, but a survey we conducted of 38 geographically diversified builders indicated that their business plans call for a 10 percent rise in starts this year.