What Bubble?

Low interest rates and a lot of new buyers are driving up housing prices. It's not irrational exuberance

Your house seems to be acting like Cisco in early 2000. Home values surged 17% or more during the past year in cities hardly known for their flash, such as Tucson, Ariz., and Topeka, Kans. Many buyers are waving bids around without even inspecting the property. And money is flooding into McMansions and vacation homes, reminiscent of the cash that rushed into technology-stock funds that were all the rage a few years back. So the bubble police are on full alert, sensing another NASDAQ-like flameout.

But don't let it concern you. Bubbles are for tech stocks, not homes.

Real estate is...

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