The real estate bubble that burst in 2006 took six additional years to entirely deflate, with home prices hitting rock bottom in 2012. But by 2014, home prices, on average, have returned to their pre-bubble norms.
And with the economy growing only modestly, and average incomes growing slowly, there isn’t a lot of reason to expect that home price appreciation will do much more than keep up with inflation in coming years.
But that’s on a national level, and local markets behave much differently. In fact, there are several markets in America where analysts argue that–when compared to historical trends, incomes, and rents–current prices look overvalued.
Riverside-San Bernardino, California
Los Angeles, California
San Francisco, California
Orange County, California
San Jose, California
West Palm Beach, Florida