Implode-o-Meter News - Home Prices Growing "Too Fast;" More Homebuilding Needed -NAR

The national median price for all existing housing type was $208,000 in May, a 15.4 percent increase over May 2012. The national median price has now risen for 15 consecutive months on a year-over-year basis; the last time this happened was from March 2005 to May 2006. May was the sixth straight month that those annual increases have been in double digits and May's was also the strongest price gain since October 2005 when median prices jumped 16.6 percent from a year earlier, the largest increase ever recorded by NAR. .
Lawrence Yun, NAR chief economist, said the recovery is strengthening and to expect limited housing supplies for the balance of the year in much of the country.Â "The housing numbers are overwhelmingly positive.Â However, the number of available homes is unlikely to grow, despite a nice gain in May, unless new home construction ramps up quickly by an additional 50 percent," he said.Â "The home price growth is too fast, and only additional supply from new homebuilding can moderate future price growth."

New homebuilding... or the Fed crashing the bond market.

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Home Prices Growing "Too Fast;" More Homebuilding Needed -NAR