Exactly. Prices are value neutral. When the government decides that housing prices should be higher (applies its own value judgments to prices) it creates a b

Exactly. Prices are value neutral. When the government decides that housing prices should be higher (applies its own value judgments to prices) it creates a bubble which may then burst, leading to deflation, which of course would be viewed through the lens of this value judgment as "bad". A price is just the nexus of supply and demand and cannot be good or bad.