Bubble Trouble?
By Jesse Freund

(Business 2.0) – Home prices have risen nearly twice as fast as personal wealth since 2002. Now, with mortgage rates climbing, experts worry that many potential homebuyers will be priced out of the market. When the Census Bureau releases its New Residential Sales report on July 27, keep your eye on data about the supply of new housing. Coupled with the prediction by the National Association of Home Builders that demand will level off, a rapid buildup of unsold new homes--say, more than six months' worth of inventory--would suggest that a steep drop in real estate values could occur in the months ahead.