National Association of Realtors raises a red flag on housing prices

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The number of homebuyers signing contracts to buy a house or condo reached a nine-year high in May, though the National Association of Realtors sounded a warning about rising prices.

The NAR says pending sales of existing homes rose 0.9 percent last month, and contract signings were up 10.4 percent from a year ago. Pending home sales have increased year-over-year for nine consecutive months, and the association says 2015 is shaping up to be the best year for the housing market since the downturn.

Strong sales and depressed inventory continue to push prices higher — perhaps too high, too fast. NAR chief economist Lawrence Yun says prices are now rising at an unhealthy and unsustainable pace.

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