Does Los Angeles's housing market still feel way overpriced? It is, but at least it doesn't seem to be getting any worse (or better) right now. Third quarter results are in from Trulia, and they've found the LA market is holding strong at 15 percent "overvalued" (Meaning that the value of a house now exceeds its "fundamental value," based on "historical prices, incomes and rents." Don't consider the idea of "fundamental value" too long or you'll end up living alone in the desert.). That makes LA the nation's second most overvalued market, after Austin, TX, up from third place in the second quarter. LA is rising in the ranks mostly because the rest of the area is headed back toward reasonableness: Orange County was previously at the top of the list, but has moved down to number three, and the Inland Empire (Riverside and San Bernardino areas), last at number four, has slid down to number five. The slower gains in housing prices have likely helped those two regions tumble down the overvalued list, points out the LA Times.