Home prices are closing in on their records of the last decade, reigniting fears of bubbles. Time to panic? In most markets, probably not.
Generally speaking the sentiment id the industry is that while there may be a few housing markets that are over-valued, there seems to be very little concern that we are in bubble territory.
San Franciso, New York and Denver are three markets nationally that are widely considered the most overvalued.
Some epicenters of the housing bust such as Phoenix, Las Vegas and Tampa look like they have largely returned to their long-run averages. While this means we don’t have to worry about bubbles in these places, it does mean that homeowners who bought or took cash out of their homes during the bubble still owe more than their homes may be worth.