Dive summary:

• The announcement that the annual pace of sales of new homes leapt by 15.6% in January was cheering news that demand is really coming back as the economy slowly heals, but it had its worrisome side, too.
• As the National Association of Home Builders' chief economist, David Crowe, noted, there are several factors that are keeping builders from replenishing the inventory ton sustain growth, including tight lending, appraisal issues, spot shortages of skilled labor and a shrinking inventory of buildable lots one step back up the chain.
• The January sales pace was 437,000 units per year, which is as quick as new homes have gone off the listings since July 2008.

From the article:

"... the razor-thin supply of new homes for sale is very concerning at a time when we are only about half-way back to what could be considered a ‘normal’ level of activity. ..."