At face value it doesn't make a lot of sense. Sales of existing homes have declined in six of the last seven months, and sales of newly built homes are still running at less than half the pace of historical norms.
Home prices, however, continue to rise. They are rising so far, so fast in some markets that several analysts are now crying "bubble!" while others contend homes are still largely undervalued.
"Analyzing home price levels relative to fundamental prices leads us to conclude that there is no need to fear a bubble for at least a few years to come, if at all," say researchers at CoreLogic, who base their thesis on the fact that recent house price appreciation is a result of a market correction for houses being undervalued since the housing crash.