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Trulia: Undervalued Homes Squash Housing Bubble Concerns

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June 27, 2014 8:00 AM PST 
 
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Trulia: Undervalued Homes Squash Housing Bubble Concerns 
By: Krista Franks Brock - While persistent price gains continue to dominate headlines, homes in a majority of major markets across the country remain slightly undervalued, quashing any concerns of a rising housing bubble, according to the latest data from Trulia.

Nationally, homes remain undervalued by 3 percent compared with long-term fundamentals, according to Trulia's Bubble Watch.

Market-level data reveals 76 of the 100 largest metros remain undervalued, and most of the overvalued markets are less than 10 percent overvalued.

"While the number of overvalued markets is rising, there remains little reason to worry about a new, widespread bubble forming," said Trulia chief economist Jed Kolko.

Just seven of the 100 largest metro markets are currently overvalued by more than 10 percent.

Furthermore, Trulia points out even today's most overvalued markets are nowhere near their bubble levels of overvaluation. For example, Orange County, California, the most overvalued market, is currently overvalued by 17 percent. This compares to 71 percent at the height of the bubble in 2006. >>Read More DS News

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