Home building throughout the country slowed last month. Housing starts edged down slightly to a seasonally adjusted rate of 1.164 million in May. This suggests that the supply of new homes is not keeping up with the steady demand for homes.
The upward pressure on home prices due to thin inventories has been keeping a lot of would-be buyers on the sidelines. This could keep pent up demand in place thereby creating greater incentive for builders to break ground to take advantage of rising prices.