Here’s a section of Chief Economist, Leslie Appleton Young, for the California Association of Realtors take on if we are in a bubble.

Looking back on the nearly 8 years since the “Great Recession” officially came to a close, California appears to be much improved:

• We added back all of the 1.3 million lost jobs plus an additional 1.3 million on top of those;
• Unemployment has dipped below 5% for the first time in more than a decade;
• The stock market is near all-time highs across most major indices;
• Interest rates remain near historic lows for mortgages;
• The state government is currently running a budget surplus, even if it rests on a narrow base;
• California remains a popular destination for the rest of the world, with nearly 25 million international travelers this year; and most importantly
• Home prices are rising rather than falling.

Several times throughout the past year, we’ve begun to hear the “B Word” again: have home prices gotten out of whack again? Are we at the tipping point yet? How much longer can this go on? Is California in the midst of another housing bubble?

If you’d like to read the full report, please reach out to us. We are happy to share.