Fed's Ferguson: house prices high

"A concern is that changes in the underlying conditions that fostered this pattern or a policy misstep could cause a quick reversion to the historical norm," Ferguson said, adding that the Fed was "on the lookout" for any such patterns as it keeps lifting rates.
Ferguson noted that, with global economies increasingly linked, it was possible for big changes in asset prices in one country to "spill over into the markets of others." That meant policy-makers must be conscious that their decisions can have a farther reaching impact than intended or foreseen.
"If synchronizations of asset price movements come about mainly in this way, the suggestion is that excess liquidity in one country could move asset prices in another, perhaps significantly, even if liquidity was well contained in the latter," Ferguson said