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.
He compared prices by comparing them with historical prices incomes and rent.
How California housing market do? No so good.
Orange Cty – overvalued by 9%
San Jose 3%
Austin Texas tied us with 7%.
Cities that are still undervalued:
Las Vegas by 24% (unbelievable)
Detroit by 23% Plus several ohio cities.
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