The real estate website Trulia issued a report Tuesday estimating that home prices are undervalued by about 5 percent around the nation in the first quarter of 2014. That’s better than it was the previous quarter, when Trulia reported homes were 6 percent undervalued, or a year ago in the first quarter of 2013, when it looked as though the national values were 10 percent down from where they should be.
Trulia’s Chief Economist Jed Kolko writes that bubble watching “reveals whether home prices are overvalued or undervalued relative to their fundamental value by comparing prices today with historical prices, incomes, and rents. The more prices are overvalued relative to fundamentals, the closer we are to a housing bubble – and the bigger the risk of a future price crash.”
In that case, it seems Connecticut has nothing to worry about at this time. Three of the states metros made Trulia’s “Top 10 metros where home prices are most undervalued.” Check out how we stack up:
Of course, there are several places where home prices are now overvalued, and six of the top 10 are located in California, according to Trulia, which sets Orange County at the top of the list with a home price 16 percent over its value. Check out the post for the full ranking.