Housing Bubble

Los Angeles and Orange Counties are two of the three most overvalued housing markets in the country, according to a new report from Trulia.

By Tim Logan
October 2, 2014

Southern California’s housing markets are among the most overvalued in the nation, according to a new report. But the closest thing in this country to a housing bubble is actually in Texas.

That’s according to figures out Wednesday from real estate website Trulia, which issued its quarterly “bubble report,” which measures home prices against incomes, rents and historic trends in 100 big cities. Of the five frothiest, three are in the Southland.

Prices in Los Angeles and Orange Counties were each 15% above what economic fundamentals support, according to Trulia chief economist Jed Kolko. In the Inland Empire, they’re 11% overvalued.

That’s actually a bit below the levels Trulia recorded three months ago, probably because home price gains have slowed while incomes have climbed. But it’s a contrast from the nation’s market as a whole, which remains 3% “undervalued,” according to

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