What’s a townhouse worth these days? How about a traditional home? Well, in Nevada, California, Florida and Washington D.C., housing prices are going up more than 20 percent a year. The end result is that those areas may be in a “bubble” that is about to burst. Economists and those in the housing industry agree overwhelmingly. So, what happens to the bubble? Does it eventually burst or just slowly deflate? Well, the New York Times wrote a related story about Denver, which has been experiencing rising housing values for years. Home values there were escalating at a tremendous amount, and then it stopped all of a sudden last year. The bubble hasn’t burst, but the values have not changed. In some areas, they have gone down. But in most areas they’ve stayed the same. So, how does that affect people? If you have an adjustable rate loan, you may find yourself in a tight spot. People with a fixed rate can ride it out. But those who bought homes in the last phase of the bubble could face the worst of it. If you are in a bubble market and you have a risky loan, refinance to a safer loan. Homes in Denver are now sitting on the market for months. In addition, builders are cutting the price of houses and offering tons of incentives. So, it could take a while to sell your home. If you’re in a speculative market, figure out how to pull back from the cliff.