Metrostudy: Solid foundation for price gains on new homes near job centers

Metrostudy Chief Economist Brad Hunter expects new-home prices will post double-digit increases for the rest of the year, as buyers continue to snatch up homes to live in rather than flip. These price gains are being built on a solid foundation because developers are building on pricey land in desirable locations near job centers instead of building on the cheap in far-flung “exurbs.” Hunter thinks rising mortgage rates will cap new-home price appreciation at 6 percent next year. Source: businessweek.com.