Angry Bear covers a recent New York Fed piece on US house prices, which paints a relatively benign picture of developments in U.S. housing markets.  In particular, the authors (Jonathon McCarthy and Richard Peach) minimize the  likelihood of any substantial economic disruptions from a housing price bust.  I can't really do a better job of summarizing the results, so surf on over and take a look at AB's post.

You may also want to take a look at this post, addressing a San Francisco Fed article covering similar territory.

UPDATE: More, more, more.