Skyrocketing Housing Prices

Rising prices are fueling the practice of house flipping, which have some worried about another inflated housing bubble. However, others argue that flippers have a positive impact on the market, creating beneficial transactions for agents and fixing homes in disrepair which increases the overall value of the neighborhood.

Is the business of flipping homes negatively impacting the real estate market or improving opportunities and properties for agents and homeowners?

My kids live in Rocklin, California in the Sacramento area and for several months my son-in-law has been saying that if you don't make an offer on a home the first day it is on the market, you will be confronted with half a dozen or more buyers in a bidding wars.  That is unbelievable, and it looks like we are creating another bubble.

My daughter bought a nice house in Rocklin little more than a year ago for $239,000.  Same floor plan three doors down just sold for $414,000.  This spike in pricing does not make sense.

On KCRA Televsion News about a week ago, they showed model homes which were for sale in the $200K range just two months ago and those same models, same square footage, are now selling and I want to repeat SELLING for DOUBLE THE PRICE THEY WERE JUST TWO MONTHS AGO.  This has nothing to do with flipping.

Are we in for more in the way of real estate crashes if we don't rein this in?  I hope not, but . . .