The U.S. housing recovery has been causing home prices to rise.
Las Vegas stands out as one of the hottest markets in America with home prices up 15 per cent year-over-year.
“More traditional buyers and sellers are sitting out of the market and investors are bidding up prices for foreclosed homes and [homes] at the lower end of the market,” Quinn Eddins at RadarLogic tells Business Insider.
Eddins says investor activity in Las Vegas has increased 67 per cent year-over-year through December 2012.
All of this has some economists warn that it may be overheating. Legendary housing expert Robert Shiller describes the Vegas market is “frothy” and showing signs of “exuberance.”
Meanwhile, the Mansion at Turnberry Place is one of the most expensive homes in Las Vegas selling for about $18 million.
Some believe that home prices have been driven by the decline in foreclosures, which has caused supply to tighten.
The law requires all documents in the foreclosure process to 1. 'Be filed in the local office of the county clerk.' 2. Requires bank or others looking to foreclose a home to produce a notarized affidavit giving them the right to foreclose. Offenders could get fined or get jail time. Banks have been trying to get this repealed.
Whether this affects home prices will depend on the pace at which distressed properties hit the market. So far, it's been slow.
But Robert Shiller — the economist who famously predicted that last housing bubble — warns of bubble mentality in Las Vegas.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.