Freddie Mac said in its November Insight released yesterday that there is ample evidence against the idea that the U.S. is in a housing bubble.

“Despite the substantial house price increases in recent years and the evidence that house prices are unusually high in a growing number of metro areas, the Insight concludes that there is not currently a house price bubble,” the report reads.

Low inventory, not easy credit, is driving home prices upward, according to the report. It also points out that there isn’t as much house-flipping going on today as there was during the run-up to the last meltdown and homeowners aren’t increasing their mortgage leveraging as much as they were.

“The evidence indicates there currently is no house price bubble in the U.S., despite the rapid increase of house prices over the last five years,” Sean Becketti, chief economist at Freddie Mac, said in a statement. “However, the housing sector is significantly out of balance. The incomplete recovery in residential construction following the crisis of the last decade has created several years of pent-up demand for household formation. What we can’t predict is how this imbalance will eventually be resolved. Will there be a gradual restoration of a normal balance between supply and demand? Alternatively, will the rate of home building remain stubbornly low, exacerbating the income and wealth inequality that followed the Great Recession? Another bubble appears to be a less probable scenario, but not an impossible one.”