Most undervalued market: Las Vegas
How much prices lag fundamentals:
The Las Vegas housing market's fortunes have risen and fallen in recent years faster than a gambler's pile of chips.
After peaking in 2006 at 70% above market-fundamental levels, Sin City home prices have tumbled to 24.1% less than fair-market value today, according to Trulia's estimates.
That said, a rebound looks like it's in the cards.
Trulia found that asking prices on Vegas homes rose a stunning 28.5% over the past year -- the highest percentage gain among America's 100 largest metro areas.
"We're seeing lots of investor interest and big price increases in Las Vegas," Kolko says. "Prices are still undervalued, but not as much as they were a year ago."