More Gains in Store for Homebuilders

The housing market reached a milestone in January that almost no one noticed. The S&P CoreLogic Case-Shiller Composite, an index that tracks average home prices in 20 U.S. cities, finally rose above the record set in April 2006. Is it cause for celebration or trepidation?

A bit of both. The good news is that more Americans are getting a home of their own, and those who already have one are seeing the value of a valuable asset rise. The bad news is that, by historical standards, homes may be getting too expensive. "Of the nation's 50 largest housing markets, 52% were considered overvalued in April," reported CNBC, drawing on a housing consulting firm's analysis.

After the housing bubble popped in 2006, prices continued to drift lower for years, not reaching