Home price jump is more rebound than bubble

[SlimJimmy]

The rapid run-up in housing prices the past year has ignited talk of another housing "bubble," but only a few markets are at risk — so far, experts say.

U.S. home prices rose 10.9% in the 12 months ending in March for their largest annual gain in seven years, according to the latest Standard & Poor's Case-Shiller index released Tuesday.

Even with that rise, home prices are about 28% off their 2006 peaks, Case-Shiller says.

http://www.usatoday.com/story/money/business/2013/05/28/home-prices-climbing-but-not-in-bubble-territory/2366953/

Good news for the housing market. I hope this trend holds; the economy could sure use it about now.

[DJ13]

1. Much of the price increase is due to investors, not home buyers

That will also mean a rising price for rent in the future.

[SlimJimmy]

5. When my wife and I were married, we retained her property and rented it out. We set the rent just

above what it costs us for the mortgage, taxes, and insurance. We're happy, and so are our tenants. I would *hope* that these investment buyers would take the same approach and just look to get a small profit from each rental. Maybe some wishful thinking on my part.

[Safetykitten]

2. All. Bubble. Investors.

[SlimJimmy]

3. I'm really hoping that isn't the case. I'd love to see the trend continue with more

first time buyers entering the market.

[DCBob]

4. Its still too expensive and too difficult for many first time buyers.

especially in urban areas with obscenely high prices.

[SlimJimmy]

6. I guess. We live in the southeast where home prices have plunged and are just now starting

to climb back. I would say that many homes in my area are priced to sell for those first time buyers. As you said, though, that may not be true for those in more urban areas

[WCGreen]

7. Our house, according to Zillow, at about the same amount as it was right

before the crash.

[SlimJimmy]

8. We're up about 2%, but I had the house built in '97, so the bubble really didn't affect the

market price as much as new housing, which was over-priced to begin with.