Economist Robert Shiller believes that the housing market has entered bubble territory. And yet, housing stocks aren’t necessarily imperiled.

In a recent interview on CNBC, Shiller emphasized that home prices appear to be driving an increase in housing starts.

“In real terms, the home prices have never been so high,” says Shiller, who is a co-founder of the S&P CoreLogic Case-Shiller home price index. “My data goes back over 100 years, so this is something. I don’t think that the whole thing is explained by central bank policy. There is something about the sociology of markets that’s happening.”

Shiller also predicts that housing prices could be a lot lower in 3-5 years, repeating what happened in 2003, which ultimately led to the 2008 financial crisis – and caused homebuilder stocks to crash.

However, while the economist is signaling home prices are too high, the CEOs of some of America’s largest homebuilders and investors seeking…

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