Dive summary:

• Housing prices are recovering, and rapidly in some places, but financial experts say they are concerned that the overall economy, at least in some places, won't be able to sustain a housing market that gets too far in front of it.
• Fitch Ratings said it fears that too much of a good thing – housing price increases – could give the market a bad case of indigestion, stalling the recovery by getting to locally unaffordable levels.
• CoreLogic has noted that keeping the wind in the sails of a housing recovery depends a great deal on the local economy.

From the article:

In Los Angeles, prices are up more than 10% in the past year despite a stubborn unemployment rate that is well above 10%. ...