“We're probably in the third inning of this recovery, but there's no reason to believe we're in a bubble right now"

A recent surge in the U.S. housing market has market watchers throwing around the notion of entering another real estate bubble.

“Housing affordability is near an all-time high, and the very low -level of interest rates has had a positive impact on the housing market,” he added. “But in terms of home prices, we haven't gotten near where we were during the market's peak of a few years ago,” said Joel Huffman, senior vice president and portfolio manager at U.S. Bank Wealth Management.

Prices in the U.S. housing market, as measured by the Standard & Poor's Case-Shiller Index, rose by 10.9% over the 12-month period through March, representing the largest annual gain in seven years.

But even with such a strong rebound, home prices are still 28% below the peak levels of 2006, according to the report 6 days ago.

Kevin Mahn, president and chief investment officer of Hennion & Walsh Asset Management Inc: “We're probably in the third inning of this recovery, but there's no reason to believe we're in a bubble right now,” he added. “When you really start to see a bubble, you'll see people putting their homes on the market, and construction supply will be increasing.”

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Source Article – Investment News