Is Palatine IL running the risk of a burst in the "housing bubble"?
First off I would say there isn't a true housing bubble as that would mean that nationwide there would need to be a drastic price reduction across the whole US housing market. This will not happen as housing is a local market and not al areas have had the huge runup in prices. Some cities might be in trouble, but not in the Chicagoland area.
The Chicago Metro area is still one of the most affordable major metro housing markets in the United States. Chicago metro area is also expected to have a strong job growth that will bring more workers to the area that will need housing over the next decade.
For an interesting read about the "housing bubble" in many of the US's major markets take a look at NAR's research.
Written by Ken Smith or the Suburban House Hunters Team