Colony Capital's Tom Barrack believes homes are in danger of becoming overvalued thanks to low borrowing rates and an improving labor market fueling demand. 

"We have asset bubbles for sure and asset bubbles are necessary when you don’t have growth" in the economy, Barrack, Colony’s founder and chairman, said. "If you go to new homes, the builders have to buy lots, so the next stage we are going to see is a land boom."