Second and Third Tier Cities Are Now in the Bubble

Up until the past two months, most of the bubble talk centered around the larger, glitzier cities like New York, Los Angeles, Miami and San Francisco. Over the past few days though I have noticed more stories about smaller cities experiencing sharp upward price moves, including places like Baltimore and Kansas City.

[“WASHINGTON - Gains in home prices in the Baltimore area and Maryland continued to outpace those in the nation in the first quarter as low mortgage rates and limited supply further fueled demand in a hot real estate market.

Prices in the Baltimore area and the state rose nearly 21 percent since last year's first quarter, the Office of Federal Housing Enterprise Oversight (OFHEO) reported yesterday...”]