This sound is called "water hammer" yes it can hurt some pipes and valves in the house. It is caused by water pressure from the water co. being higher than normal, they have to raise pressure in areas to move water for new construction and what-not. The cure some times but not always is to install an "anti-hammer device on top of your hot water heater. a "water hammer arrester" is what they are called, cost about $11.oo and up. .

This is air. they make these hammer arresters. you can find them at any hardware store