bibleplaces.com: “Expect a media frenzy with the timing of this story a few days ahead of Christmas. A minor sidenote: this discovery should put to rest the theory of at least person who has claimed that since Nazareth is mentioned in the first century only in the New Testament, the city did not exist at that time. It is true that Nazareth is not mentioned in Josephus and other contemporary sources, but that is only an indication of how insignificant the town was.”
Israel Antiquities Authority – A Residential Building from the Time of Jesus was Exposed in the Heart of Nazareth.More about the house in the AP Article, especially on the configuration of the house-grotto as a hiding place for the Jews from the Romans.