Not another Bubble, Trulia confirms

bubbles-two

Many homeowners & buyers are worried that the present price increases & housing recovery is leading towards another bubble experienced back in the 2005/2006 fiasco.  Trulia has done some research comparing various price indexes to per-capita income & rent data obtained by the government & concluded that home prices are still 7% undervalued nationally, coming down from a peak of 39% overvalued prices in 2006.  After THAT bubble burst, prices fell to being 15% undervalued at the end of 2011.  Trulia also feels that several forces are “waiting in the wings” to slow down today’s rapid price gains before they rise into bubble territory again…..increased inventory, higher mortgage rates & fading investor activity.

http://www.dsnews.com/articles/trulia-housing-rebound-not-forming-bubble-2013-05-14