Houses Still Undervalued, Trulia Says
New York, NY, May 15, 2013 -- The housing market is still a long way away from a bubble despite concern by some economists, according to real estate firm Trulia's new Bubble Watch.
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Despite a steep upturn in home prices over the last year, home prices are undervalued on a national basis by around 7%, compared to being 39% overvalued in early 2006.
Home prices in some parts of the country are rising today at the same rate that they did during the bubble years of 2003, 2004, and 2005.
Trulia said that if prices continue to rise at the current rate, the housing market would hit bubble territory in several years.
However, it sees increases slowing because there will be a greater supply, mortgage rates will eventually rise, and interest by investors will decrease.