Although home prices have risen rapidly, house hunters got some good news Tuesday. Home price growth is finally moderating, Zillow Group CEO Spencer Rascoff says.
"The story of housing over the last couple of years has been that there's too much demand and not enough supply. Finally, apartment building managers and real estate developers are building new apartment inventory, and home builders are bringing in single family inventory online," he told CNBC's "Squawk Alley."
"Zillow data says that, whereas home values were increasing about 5 percent year over year, we're now starting to moderate around 2 to 4 percent year over year, and that's because of new supply coming," he said.
U.S. housing starts rose 5.2 percent to a seasonally adjusted yearly rate of 1.18 million in February, their highest level since September.
Home prices fell sharply after the Great Recession, but have since staged a remarkable comeback. In fact, the S&P/Case-Shiller 20-City Composite Index rose 5.7 percent in January from the previous year.
"The way this resolves itself is home builders and apartment management companies build new inventory and, as home values rise, people get pulled out of negative equity [and] that creates more ability for people to list," Rascoff said. "Thankfully, real estate developers are building new inventory," Rascoff said.
