House prices in the Twin Cities haven't been rising at the same pace as the national average — 3.1 percent in the Twin Cities during February vs. 5 percent nationwide.
But that's not necessarily a bad thing.
Here's why: In some parts of the country, house prices are increasing faster than the national average, fueling fears that price gains in those areas are outpacing wage increases.
In Denver, for example, the index increased 10 percent and in Miami prices were up 9.2 percent, according to the latest S&P/Case-Shiller home price index, which measures changes in the price of the same the house over time.
Nationally, signed contracts to buy homes jumped in February, yet the number of Americans listing their homes for sale remains low. That has led to bidding wars in some cities.
The Twin Cities experienced the same phenomenon in both February and March, a month when signed contracts surged 30 percent over the year-ago level.
Home supply in the metro area is held back by the number of homeowners, one in seven, who still owe more than their house is worth and would lose money if they sold it.
