An economist from Trulia states that this is not a bubble- merely a rebound- Prices are 7% undervalued because the pendulum had swung back so far in the last downturn, A housing bubble is when prices soar above their fundamental value which is based on supply and demand. A bubble encourages speculation and further price increases.
Take advantage of the new tools for doing research about what is going on in specific area. I use redfin to check out mls listings so i can see what condition the property was in when it sold. Regular comps don’t give you that info. You can also find out how long a property was on the market and how often it went into and fell out of escrow and price changes.