Are We Heading For Another Housing Bubble?

Wisconsin REALTORS® Association (WRA), Latest News, HousingWire, Real Estate, S&P/Case-Shiller: Home Prices Continue to Strengthen, by Megan Hopkins, April 30, 2013
Home prices continued their upward trajectory according to data released in the S&P/Case-Shiller Home Price Indices.
With prices appreciating throughout the country and buyers facing multiple offers on homes, many are wondering if we are in another bubble. Redfin's Chief of Real Estate Operations, Scott Nagel, says this is a question his agents are constantly asking.
"The catastrophic bubble that popped five years ago was plagued with faulty loans," said Nagel. "In contrast, today's rapidly rising home prices are largely driven by the abundance of all-cash offers and a lack of inventory. And when the home purchases are financed, appraisals and other tight lending practices are keeping home prices more in check."
Analysts at Econoday agree, noting that the Case-Shiller report only further strengthens the notion that housing is headed back to healthy again.
"This report underscores the healthy gains in the FHFA price report and confirms a pivot higher for home prices, a pivot that promises to be a special story for this year's economy. This report should boost confidence in the housing sector," Econoday said.

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