Housing Bubble

You have to look at the reasons there is an inventory shortages to really determine if there is a bubble. Homeowners are not listing there property because they have no where to go. When a property comes on the market, they will pay more then it is worth.

Every one wants to invest again and they are paying cash. While all-cash sales might reduce the glut of empty homes on the market, the unintended consequence is that the trend does little to support home prices.

The U.S. foreclosure inventory is at over 1,500,000 properties. The banks are holding back properties, waiting for rising prices.

Comps are coming in higher due to prices being higher then they are worth.

When you look at the definition of a housing bubble, everything happening meets the criteria.

Definition of 'Housing Bubble'

A run-up in housing prices fueled by demand, speculation and the belief that recent history is an infallible forecast of the future. Housing bubbles usually start with an increase in demand (a shift to the right in the demand curve), in the face of limited supply which takes a relatively long period of time to replenish and increase. Speculators enter the market, believing that profits can be made through short-term buying and selling. This further drives demand. At some point, demand decreases (a shift to the left in the demand curve), or stagnates at the same time supply increases, resulting in a sharp drop in prices - and the bubble bursts.