“We have a new report from the very prestigious National Bureau of Economic Research. They make a number of important points about this concern over housing bubbles,” says Dr. Walden, an economist with the North Carolina Cooperative Extension Service.

“First, they say that you cannot compare housing markets in different parts of the country, because it’s really a local market. So if people hear about, for example, housing prices plunging in San Diego, [they] should not automatically think that’s going to happen in their local area.

“Secondly, in studying national housing markets, this study concludes that in most areas of the country houses are not overvalued -- and especially they point out here in the South. So they would not expect a general decline in prices.

“However, that said, their third point, I think, is very important: They say that unexpected events like a big jump in interest rates or a severe recession could prompt housing price declines.

“But for most homeowners, I think they can sleep well at night.”