Home prices continue to rise, but according to economist and Forbes contributor Bill Conerly, we are not in a bubble, yet.
“The key reason I think not is that construction has hardly increased,” Conerly writes. Single-family housing starts year-to-date average 667,000 units, 60 percent less than 2006’s high water mark.
“All told, we are not in a bubble. That does not mean that pricing is right; it could well be a little too high in some areas,” Conerly adds.