Home Prices far from bubble territory, Trulia says
Trulia’s Bubble Watch analyzes relative fundamental values by comparing prices today with historical prices, incomes, and rents to determine whether they are overvalued or undervalued.
According to Trulia’s Chief Economist Jed Kolko, home prices now are 3 percent undervalued, and just seven out of the 100 largest metros are more than 10 percent overvalued.
Home prices in some of the worst-hit areas of the country have fallen far below pre-bubble levels, igniting concerns that properties in those markets are undervalued, according to analysis by Zillow.