“Despite continued price gains, most other housing statistics are weak. Sales of both new and existing homes are flat to down. The recovery in hous ing starts, now less than one million units at annual rates, is faltering. Moreover, home prices nationally have not made it back to 2005. Mortgage interest rates, which jumped in May last year and are steady since then, are blamed by some analysts for the weakness. Others cite difficulties in qualifying for loans and concerns about consumer confidence.
The result is less demand and fewer homes being built.
New York, April 29,2014
S&P