Is there a bubble forming in Portland?

As those of us in the Portland, OR housing industry know the current imbalance between supply and demand in our local market is a little bit concerning.  Stories of multiple offers, waving contingencies, and sales way above asking are everywhere and for some the prospect of buying a home may seem impossible.

Fortunately, I am hearing from Realtor professionals that they are getting more and more inquiries from sellers as we move into spring.  This is a welcome sign because greater supply is the only thing that will ease the existing pressures.  Portland is a very desirable place to live and we expect demand to remain strong.

That said, I have heard some participants voice concerns about a real estate bubble brewing.  I thought I would share an info-graphic that John Burns released last week on his blog:

Is-There-a-Market-Bubble-in-Potland-OR
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At this point I do not forecast a bubble popping in Portland.  Demand remains very strong and the outlook for jobs in our area looks solid.  As long as there is a lack of supply I don’t see how prices can fall.  Should those dynamics change in the future, which is entirely possible, then I would have to adjust my forecast.

What are your thoughts?  Please feel free to comment.