After a six-month-long frenzy of home buying and building, some economists worry that the bubble is about to burst and home prices about to deflate. Mark Zandi of Regional Financial Associations is not among them.

"The concerns of a bubble are overblown," Mr. Zandi said in an interview from his West Chester, Pa., office. But he acknowledged, "There is good reason for concern, because the potential of a bubble developing has not been as high since the late 1980s."

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