Home Prices Are Surging

And next, the big news tonight out of the housing market. Home prices surging up 9.3%, the biggest jump in seven years. So is it time to buy? Abc's chief business and economics correspondent rebecca... See More

And next, the big news tonight out of the housing market. Home prices surging up 9.3%, the biggest jump in seven years. So is it time to buy? Abc's chief business and economics correspondent rebecca jarvis spent the day talking to the experts. Right now it is a very competitive market. Reporter: Two weeks into the hunt for their first home in san diego, and the robinsons can already see it won't be easy. In just the few homes that we have looked at, they have sold in a few days. Reporter: Today's study confirms home prices are up, especially in hot markets like phoenix, las vegas, los angeles, san francisco, atlanta, and dallas. The problem, a nationwide housing shortage. There there are lots of buyers, 25% more this year than last. But the number of homes for sale is actually down. Most homes are selling within three to five days. Reporter: Some are taking drastic measures, bidding wars are common. It's a hot property. It will go quickly. Reporter: So are personal liter alerts appealing to sellers. There are even lotteries, like this one, buyers line up, throw their names in a hat and hope for the best. The sellers are being romanced. Pretty, pretty, pretty, please. What can I do to win your property? We polled our panel of housing experts, is this the beginning of a healthy boom or another bubble? The consensus, prices will keep rising this year and no fears of a bubble just yet. I would buy a house right now if I were starting out again and wanted a home. Reporter: But shiller and others caution to beware of the frenzy in hot markets where bidding wars are breaking out. The robin sons, like many others, may need to lower their expectations if they want to buy this year. We're looking at a lot of houses and trying not to get attached because there's a good chance someone else's offer is going to be accepted. Reporter: This house behind me wasn't even on the market when it sold. The broker said he's done 12 deals in just the past two months.