Although most of the housing markets with big price gains exhibit unhealthy fundamentals, some markets with rising prices are healthy. Markets with flat or falling prices include both healthy and unhealthy markets.
What explains these local differences in construction activity? These top markets for 2012 construction tend to have strong job growth and low vacancy rates, and they suffered relatively little during the housing bust
The latest housing information indicates that home prices have continued to make a slow and steady recovery. That's good news for the economy in general, and specifically could help homeowners and depositors in savings accounts.
Prices are rising in at-risk metros because prices have fallen so far that they've attracted interest from prospective investors and international homebuyers, whose interest in U.S. homes can be volatile; in contrast, prices are rising in the in-the-clear metros primarily due to job growth.