Home prices are on a tear — up 10.9 percent in March, compared to one year ago, in the 20 big metro areas. The 10-city index was up 10.3 percent, and the national index was up 10.2 percent. For several months, the index has shown prices rising in all major cities in the country. That’s despite the fact that — with the exception of the stock market — no other sector of the economy is improving at this rate. Certainly wages and new-job creation aren’t on this kind of up-slope.
The last time home prices were rising at this rate was spring 2006. Soon after — in the summer of 2006 — home prices peaked, before they came crashing down.
For full article see: http://www.marketplace.org/topics/economy/home-prices-are-rising-fast-should-we-be-worried
