Home prices are rising rapidly — so much so that industry participants are warning that housing is entering another national bubble, according to the New York Times.
While the market is not in a bubble quite yet, there are troubling signs that housing is heading down that path.
Many homeowners anticipate housing prices will increase 5.7% next year, a dramatic hike when compared to the 4% expectation for 2013, Yale professor Robert Shiller explained.
"People who are now inclined to buy a home are most often just thinking that we are gradually recovering from a recession and that this is a good time to buy," Shiller wrote in the article.
He concluded, "The mental framing still seems to be about economic recovery and the likelihood that interest rates will rise. People mostly don’t seem to be prompted by the anticipation of another housing boom."
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