"Surge Pricing" is Over for U.S. Housing

Fears of another bubble are looking increasingly misplaced as supply and demand rebalance.

The temporary shortage of new single-family U.S. homes for sale has abated thanks to a jump in construction completions and a moderation of consumer demand. Recent data on construction starts, permit applications, new home sales, and inventories of homes for sale are all pointing in the same direction: after a brief spike in prices, the American single-…