Matthew Gardner does not see a housing bubble on the horizon even though many local markets are overheated.

Gardner, who recently became the chief economist for Windermere Real Estate, headed Seattle-based Gardner Economics for 17 years. He points to fewer house flippers, rigid lending guidelines, higher interest rates and rising home prices as reasons for his no-bubble theory.

In a blog post, Gardner noted that the number of foreclosed homes continues to drop. Foreclosures are the preferred property type for flippers-investors who rehabilitate properties and immediately list them for resale with hopes of a quick profit.

Oversupply is a necessary prerequisite for a price crash. The inventory of existing homes, new homes and in-city condominiums have become scarce in the Puget Sound area.