CoreLogic just released its March MarketPulse report (PDF). The report examines the risk of another housing bubble in light of large price gains in many markets in 2013, looks at the relationship between high-end home sales and the health of the financial markets, points out that this year is widely expected to be the trough year for mortgage originations, driven by lackluster economic growth, as well as a number of other factors.
Key findings in the report include:
Despite much speculation about another housing bubble, home prices are expected to remain slightly undervalued relative to income levels through the end of 2015. In housing’s freshman year of healing, a disproportionate recovery emerged in cheaper markets which showed higher new home sales shares than expensive distressed markets. Detroit is exhibiting signs of new life, with more than half of ZIP codes in the metro area registering year-over-year growth rates of more than 15 percent in 2013.