Home values continue to rise nationwide and many are wondering whether we are heading towards another bubble. Zillow recently reported that "National home values have surpassed the peak hit during the housing bubble and are at their highest value in more than a decade."
That is a correct statement but we must understand that just comparing prices of a decade ago does not mean we are at bubble numbers.
Here is a graph of median prices as reported by the National Association of Realtors (NAR).
It shows that prices rose during the early 2000s, fell during the crash and have risen since 2013.
For comparison, let’s assume there was neither a housing bubble or a crash and that home prices appreciated at normal historic levels (3.6% annually)…