DZ, there’s simply no RE bubble here unless you are also predicting a crash in rents. Right now buying a property here yields about 5% while long bonds yield 3%. That’s just not a bubble valuation.
This was not the situation in 2006, when bonds paid 2x or more local rental yields. The house I actually rented back in 2006 yielded about 2.5% based on a similar sale. $1200/mo and $400k.
