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Phoenix, Las Vegas home prices soar

Sharp appreciation sparks bubble concerns

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Phoenix home prices may have increased 21%, while homes in Las Vegas sold at levels 23% higher, but there's no assurance of a long-term housing recovery, the Phoenix Business Journal reports. The paper exposed some of the rumors now surfacing in the two markets:

The sharp increase in home prices in Phoenix and Las Vegas is leading some real estate experts to say both areas are seeing price bubbles.

The two markets were the hardest hit during the recession, with homes in each losing between 50% and 60% of their value.

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