When credit conditions are deteriorating and there are non-financial reasons for high prices, watch out
By Sean Becketti | inman
In 2011, house prices started recovering from the Great Recession.
For the first few years, rapid house price appreciation was welcome news. Homeowners regained lost equity, the number of underwater borrowers shrank and delinquencies and defaults fell.
More recently, though, surging house prices have led some to worry about the potential for another house price bubble. Recently, house prices finally topped their 2006 peaks, and growth has been particularly strong in recent years, averaging 5.6 percent annually.
