'So-called bubble' likely to deflate, not burst

Harvard University report highlights affordability problems

House prices surged faster than household income and inflation, the national home-ownership rate fell for the first time in over a decade, housing inventories shot up with slowing sales, and the volume of sub-prime loans has soared.

But despite these findings, released today by Harvard University’s Joint Center for Housing, the outlook for the housing market is generally good.

“The greatest threat to housing markets is a precipitous drop in house prices.