With rising home prices many are claiming there is a real estate recovery. While prices may be increasing and in some areas have exceed the 2005/06 price levels, the volume of homes sold is no where near what it was in the mid 2000's.
Home prices have risen in large part because of cash buyers and investors purchasing homes in a market characterized by low inventory. As interest rates rise and investors exit the housing markets, is the economy strong enough to support a continued housing recovery? Will there be enough retail demand to support further increases in home prices?
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