Former Regulator Warns of 'Bubbly' Housing Market, But Not Expecting a Crash Like 2008

Home prices have skyrocketed in recent years, sparking worries of a housing bubble according to former regulator Sheila Bair.

Bair says prices are "bubbly" after years of low rates fueled buying frenzy, but doesn't expect a crash like 2008.

With supply constraints, Bair says high prices could persist for some time before "deflating."

Unlike mid-2000s, Bair sees less speculation now, so existing homeowners have built up equity.

Bair hopes prices fall to become more affordable, though homeowners don't want to hear that.