The housing market is in a bubble, but home prices may not fall anytime soon, says regulator who oversaw last crash

• There's a "classic supply-demand imbalance" in the housing market, Shiela Bair told CNN.
• The former FDIC chair, who served during 2008 housing crash, said home prices are unlikely to ease anytime soon.
• A crash today won't be as bad as last time because homeowners have more equity in their houses, Bair added.

Anyone who hasn't been living under a rock knows the housing market is not doing so great right now. Home prices are way too high, mortgage rates are way too high, and housing inventory is way too low.

For Sheila Bair, it's all too familiar. 

The former chair of the Federal Deposit Insurance Corporation saw the housing bubble burst in the mid-2000s. Back then, the housing market collapsed after years of low interest rates, lax lending practices, and speculative buying inflated housing prices.