Housing Bubble
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%

L.A. 5%

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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