Portland home prices rose 13.5% in September from a year earlier.
Economists expect rising prices, a drying up for foreclosed properties and an eventual rise in mortgage rates will slow home-price growth to a more sustainable level.
But the breakneck pace of recent gains, especially in California markets, has raised the fear the prices might have rebounded two quickly, creating a bubble that may force a correction.
“The strong price gains in the West are sparking questions and concerns about the possibility of another bubble,” said David Blitzer, S&P’s index committee chairman. “However the talk is focused on fear of a bubble, not a rush to join the party and buy.”
Read more at OregonLive.com.