The Economist's latest article about US housing focuses on latest data from its index of US house prices which show ongoing rises prompting The Economist to pose the question, are we heading for another US property bubble?
The conclusion, perhaps, but only in some places such as LA and San Francisco:
"To test this possibility, The Economist has compared house prices with the rental cost of housing and with median household income. If over the long-run house prices rise at a faster rate than either of these two measures, it suggests that either rents or incomes must rise, or house prices must fall. When we last published our data in June 2013, house prices looked to be at or below fair value compared with rents (meaning within 10% of the long-run average) in all but two cities. Nine months later, six cities lie outside that boundary. In the frothiest places—Denver, Los Angeles and San Francisco—houses are overvalued by around 16%."
The states favoured by most foreign investors - Florida, Georgia and others - still seem to be on track for further gains based on prices versus rents and incomes.