Housing investment cycle may have peaked

The surge in housing starts, driven entirely by hi-rise condominium construction despite already high inventory, is now glaring evidence of overbuilding. Anecdotal evidence, meanwhile, points to plummeting home sales, suggesting that buyers' expectations are becoming increasingly cautious. Although multi-unit projects currently underway might sustain construction activity over the near-term, the likelihood that future sales demand will sustain this strength seems to be falling by the wayside.