True: The median housing price in Los Angeles recently passed $500,000 for the first time since those crazy bubble-times a few years back, but that doesn't necessarily mean that we're on that road again, says Trulia. Okay, so Los Angeles is the third most "overvalued" metro in the nation (when comparing the value of a house now to its "fundamental value," based on "historical prices, incomes and rents"). But! the housing stock is overvalued by far less than it was in 2006, in the big days of the bubble. In 2006, LA's homes were overvalued by 79 percent in the first months of the year; now, in the second quarter of 2014, that number is just 15 percent. Yay? Yes, yay. Yes?
The same is true of Orange County and the Inland Empire, where housing is merely overvalued by 17 and 13 percent (respectively), instead of the more apocalyptic 71 and 92 percent, as they were in 2006. Horrific to see those old numbers, but, ultimately, sort-of good news. According to Trulia, the fact that housing prices are increasing at a slower rate than they were is a good thing, suggesting that there's no bubble on the way. But then a real estate listing site would want you to think that, wouldn't they?
· Bubble Watch: Home Prices Still Undervalued, But Not For Much Longer [Trulia]
· LA's Median Home Price Tops $500k For First Time Since 2007 [Curbed LA]