The substantial run up in home prices caused by strong investor demand and a shortage of inventory may be nearing an end.  With the double digit increases in home prices over the past year, fewer people are underwater with their existing homes and are starting to put them on the market.  As this article in the LA Times points out, the recent price appreciation has also spurred homebuilders to increase their production.  With this new inventory coming from both existing homeowners and new construction, combined with rising home mortgage rates off their historic lows, forecasters are predicting home prices will begin to stabilize and home price appreciation will moderate.