I just read this article posted on CNBC http://www.cnbc.com/id/100769361
There is no question that home prices have rebounded in most metropolitan areas. Some prices in these areas have jumped higher than others, but I suspect that those that may be seeing the biggest increases are the ones that saw the biggest declines. Home values, like politics is local. The price of your home usually only matters when you go to sell it or refinance it. All things being equal, a sustained increase in the home market on a national level is the single biggest positive turn for the overall economy.
This will drive more construction which will drive jobs, which is the heartbeat of any economy. Also remember, prices are relative to what you paid. Like a stock investment that you buy at $5.00 that shoots to $10, only to sink to $1.00, then goes back to $2.00, the question is, do you have a 100% increase or 60% loss?