Are We on the Brink of Another Housing Bubble?

By Jessica Alling – Jun 5, 2013 at 5:46PM

NYSE: WFC

Wells Fargo

Market Cap

$215B

Today's Change

(-0.56%) -$0.34

Current Price

$60.60

Price as of April 24, 2024, 4:00 p.m. ET

With news every week of rising home prices in a down economy, should we be on the lookout for a new housing crisis on the horizon?

Housing market data has been one of the driving factors keeping the overall economic recovery on track. But with housing prices on the rise at a pace that's beginning to worry some investors, should we be on the lookout for a new bubble forming?

Motley Fool contributor Jessica Alling explains the reasons why some people in the know, like Tim Sloan -- CFO of Wells Fargo (WFC -0.56%) -- say that the prospect of a bubble is way off. She also talks about why bank investors should be happy to see continued improvements in the housing market.

Fool contributor Jessica Alling has no position in any stocks mentioned -- you can contact her here. The Motley Fool recommends and owns shares of Wells Fargo. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.