There is more talk veryday about a housing bubble. Just google housing bubble and you come up with lots of advertisements for hpw to make money if house prices crash. There are even alot of bloggers in on the bubble talk.
http://thehousingbubble.blogspot.com/
http://shorebubble.blogspot.com/
Outside of the west coast and the northeastern and middle Atlantic states... in the red states, essentially, we're either fairly valued or even undervalued, so any bubble is going to be regional, as has been the case in the past. All this carrying on about interest rates is a bit unhinged, I think, because we're still well below any putative long-term average interest rate for home mortgages. You can still find a 30 year conventional mortgage for under 6%. That's cheap, historically speaking. California has collapsed before and recovered, as has Boston. Houston does not seem to have fully recovered to this day, though, still being regarded as undervalued. That may well change, with the oil bust looking like it could revert to a boom.