Home values continue to rise nationwide and many are wondering whether we are heading towards another bubble. Zillow recently reported that "National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade."

That is a correct statement but we must understand that just comparing prices of a decade ago does not mean we are at bubble numbers.

Here is a graph of median prices as reported by the National Association of Realtors (NAR).

It shows that prices rose during the early 2000s, fell during the crash and have risen since 2013.

For comparison, let’s assume there was neither a housing bubble or a crash and that home prices appreciated at normal historic levels (3.6% annually)

If you are thinking of selling or buying a home, the most important decision to make is to hire the right real estate agent. Most agent are familiar with the process and can show you homes, but you should expect much more from them. Truly understanding the market is much more difficult as it seems, as we have all learned from the housing crisis. A real estate agent's job is to educate you so you can make the right decision for your needs. 

Here are a few questions you should ask your agent before you hire him or her: 

How does a change in mortgage interest rates affect buyer demand and seller's supply? 

As home prices are increasing briskly, is there a danger of another housing bubble?

Do you need a minimum of 20% down payment to purchase