Double digit gains in their homes are giving borrowers more equity as well as more confidence in the real estate market, but declinging affordability is hurting potential buyers. In addition to rising prices, higher interest rates are also moderating the housing market recovery.

Tom: Locally, we are not seeing any signs of slowdown. To the contrary, it seems that many people from up north, who are finally "above water" and/or are reaching retirement age, are moving here or buying vacation homes. 2014 is shaping up to be the strongest year (regarding prices) since the Great Recession.