But just as quickly as the market is gaining ground, some industry experts worry it will come crashing back to Earth. Here are three reasons the housing market recovery may not last:
1. The housing recovery is being led by investors. One problem is that investors are leading the latest surge in home prices, said Dean Baker, co-director of the Center for Economic and Policy Research. They are taking advantage of low interest rates and depressed home prices and when those rates and prices rise, they'll likely pull back, he said.
"An investor-driven boom is likely to end badly," said Baker. "I'm worried that some of the big jumps in prices are driven by the same sort of speculation that http://imagesurfer.cs.unc.edu/support/forums.html?vasthtmlaction=profile&id=15304 that could strip about a percentage point off the GDP this year, according to Bernstein.
Related: 5 best markets to buy a home
And while current mortgage rates remain extremely low, about 3.5% for a 30-year, fixed-rate loan, they're bound to go up, the industry experts said, making it a lot more costly for people to afford homes.
"I'm worried that it's too tough for many people to make the family budget, including the mortgage payment," said Bernstein.
http://www.youtube.com/watch?v=sp9G0lesjAQ
CNNMoney (New York) April 18, 2013: 2:59 PM ET
http://money.cnn.com/2013/04/18/real_estate/housing-recovery/
