According to Inman News fears are created with the recent boost in home prices. With low inventory and multiple offers, homes are being bought often above appraised value. Trulia's chief economist discusses why the recent leaps in home prices are not effecting the market detrimentally.
Jed Kolko, Chief Economist at Trulia says, “Incomes determine how much people can pay for housing, and price increases aren’t sustainable if they push prices too high relative to incomes." They conclude that housing prices are actually undervalued when compared with prices in 2006.
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