Recent Case-Shiller index numbers showed another decline in house prices -- prices are now at 2003 levels. At the same time, homebuilder stocks such as Lennar (NYSE: LEN), Pulte (NYSE: PHM), and DR Horton (NYSE: DHI) are near 52-week highs. Lennar's CEO told analysts last week: "Our first-quarter results reflect another quarter of confirmation that both the housing market and the overall economy are stabilizing and that a very real trend is beginning to take shape."

Last week, Yale professor Robert Shiller -- author of the new Finance and the Good Society and co-creator of the S&P/Case-Shiller Home Price Indices, stopped by Motley Fool headquarters in Alexandria, Va. I interviewed Shiller to get his thoughts on the housing market, which you can watch in the video clip below. (You can find a transcript beneath the video clip.)