5 U.S. Danger Zones That Are Already Back in a Housing Bubble

Properties prices are still on the rise but have we seen too much too soon? Market Watcher RealtyTrac says some markets are developing fresh housing bubbles. They compared median prices, local incomes and foreclosure rates against peak levels during the housing boom of 1998 to 2008. Their results show that several U.S. markets have higher median prices and are less affordable than the last time property values peaked. So where are the property bubble danger zones? In 5th place is Austin, Texas. Many of these Bubble communities are college towns where student populations are boosting housing demand and property investment. Austin Texas has seen median prices reach 27.3% higher than their 2008 peak. Austin property prices are also 26% higher than the nation wide average. At 4 is Clarksville in Montgomery County. The area is getting a boost from the Nashville real estate market. Median house prices have risen to almost $140k, over 50% higher than where they topped out in December 2008. Number 3 is Brazos County, home of 60,000 student strong Texas A & M University. It's located just 100 miles North of Austin and is attracting out of state residents from higher priced markets. Median property prices are around $185k and on the rise. The second worst U.S. bubble market is Birmingham in Alabama. Median house prices are 80.9% higher than the peak of 2005. You'll also need 42.3% of the local median income to pay for your home, vs just 29.7 during the last peak. And America's worst bubble is Boston. RealtyTrac says that's because the city's foreclosure rate is rising among recent mortgages, a phenomenon not seen anywhere else. Suffolk county has also seen property prices jump and residents now need 60.7% of local median income to pay for the typical home. Student populations have attracted out of town and overseas buyers, boosting property values.