Housing Trends & Analysis

A New Tool for Spotting Housing Bubbles

Wouldn’t it be great to know if home prices are over- or undervalued? It’s a question that has challenged economic experts for decades, but we may be getting closer to a solution. It starts with the concept of a “fundamental value” for housing, an estimate of the underlying economic value to which prices tend to gravitate when not overly influenced by short-term factors, fads or unrealistic expectations.

MBA – December 17, 2017

About the author

Ralph DeFranco

Global Chief Economist, Arch Capital Services, Mortgage Group
Ralph DeFranco is the author of The Housing and Mortgage Market Review® (HaMMR℠), Arch MI’s quarterly report on the nation’s housing sector and the economic issues that affect it. His complementary housing webinars are popular, as are his charts and maps of local housing market conditions at archmi.com/hammr.

He leads the company’s internal forecasting of regional housing prices, stress scenarios and regional housing market risk. Ralph has both a Ph.D. in economics and a B.A. from the University of California at Berkeley, as well as experience in mortgage risk management at Chase and Freddie Mac.