Home Prices Growing At Pre-Bubble Rates On Bernanke Boost, But Big Shadow Inventory Lurks

Boosted by Ben Bernanke and turbocharged by tight inventories and strong recoveries in the worst hit cities, home prices continue to grow strongly.  The widely followed Case-Shiller indexes showed the price of single-family homes across 20 of the most important U.S. cities grew 9.3% in February, its fastest rate since May of 2006 before the collapse of the housing bubble and subsequent financial crisis.  The housing recovery is already having a positive impact on growth, pushing GDP up as residential investment accelerates, but with more than 1.1 million homes in some state of foreclosure and a shadow inventory that tops 2 million units, it will take some time for the market to truly heal, while the risk of slowdown and a reversal remains a possibility.

http://www.forbes.com/sites/afontevecchia/2013/04/30/home-prices-growing-at-pre-bubble-rates-on-bernanke-boost-but-big-shadow-inventory-lurks/