The sharp increase in the price of houses in some of the largest cities in the United States point to a possible new housing bubble in those areas , according to Robert Shiller , who helped create an influential indicator of housing prices in the U.S. .
Shiller said that large price increases in Las Vegas , Los Angeles, San Francisco , Miami and Phoenix , driven in part by a large flow of money from outside investors , are a possible sign of future problems .
" There is a risk of bubbles in these cities ," he told Reuters on Wednesday Shiller , co -founder of the home price index S & P / Case- Shiller . " The increase in housing prices has been dramatic. Resembles the beginning of the most recent bubble ," he added .
There is a risk that prices will rise for another year in these areas and then falling back , hurting new buyers trying to compete in markets where low inventories and Wall Street investors bid up prices with their money .
The latest report from the Case- Shiller Standard & Poor's index showed that prices of single-family homes in 20 metropolitan areas in the United States rose 12.1 percent in April , marking the largest annual increase in seven years.
The gains were led by price increases of 24 percent in San Francisco , 22.3 percent in Las Vegas, 21.5 percent in Phoenix, 19 percent in Los Angeles and 13 percent in Miami.
Price increases were the latest sign that the U.S. housing market , a mainstay of the economy, may be in a sustainable recovery from the housing crisis that caused the 2008 financial crisis and subsequent recession.
Shiller said it is still too early to predict how healthy market recovery , and he was not sure if overall prices would continue to rise for another year.
However, he said it was unlikely a collapse of the housing market in the short term , because lending standards have tightened and government oversight of the mortgage industry has been strengthened.