Analysts won’t quite call it a bubble.
While saying that fears of a housing bubble are unfounded, builders and industry experts add that some markets are overpriced.
The Wall Street Journal found that San Francisco, New York City, and Denver are the three biggest “problem spots,” where real prices for homes continue to rise. The rising prices force consumers to spend more of their incomes on housing.
“They either have to stretch their finances so incredibly as to be in a precarious situation, or they’ve got to have a commute they view as hell,” housing economist Thomas Lawler said. “Or they can rent and hope things get better.”
Seven more markets to keep an eye on are Boston, Seattle, Portland, San Diego, Los Angeles, Miami, and Washington, D.C.