Three Myths About Housing Market Rebound

Home prices have been zooming up over the past year in many of the housing markets that saw the biggest declines. Recently, some pundits have grown wary of the rally, arguing that it’s unsupported by fundamentals and marks the beginning of another housing bubble.

Housing is recovering due to the extremely low supply of homes for sale. Demand, meanwhile, is up amid strong appetite from investors and from extremely favorable affordability conditions thanks to record-low interest rates.

Read more: http://blogs.wsj.com/economics/2013/04/02/three-myths-about-housing-market-rebound/?mod=WSJ_latestheadlines