More Indication that the Housing Bubble is About to Burst?

In a recent posting by Dean Baker at Alternet.org, he noted the following information:

1. The inventory of unsold homes climbed to 4.4 million in May, yet another record.
2. House prices are down by 4.9 percent in the Boston area and by 6 percent in San Diego.
3. Foreclosure rates are soaring.

Dean Baker goes on to state that house prices will not collapse to nothing like the most ridiculous of the Internet stocks, but homes in the most-inflated markets could lose 30 to 50 percent (in real terms) from their bubble peaks.

As I stated in a previous post, The U.S. economy has been operating in an unsustainable mode for some time now, and many experts have been predicting a serious "correction" for some time in the future. One of the main problems is the housing bubble. This could burst at any time, sending many overextended American families, and the American economy in general into deep financial trouble.