It is funny - I couldn't afford nor would I pay what my home is "worth" now - and neither would my neighbors for their houses...maybe that is a sign...
Its already happening. I see it in my neighborhood. The speculators and gamblers are getting tapped out with higher gas prices and taxes and have no more left. Plus, the upside potential simply is not there for many of these shacks. Because people perceive that the appreciation has already occurred in many of these places, there is more of a reluctance to get in at these prices.
The other fact is that the housing boom has been fueled by greed and misrepresentation. Many RE brokers have sold people a bill of goods like Carlton Sheets without telling people the truth. Many people are buying houses now that don't appraise at the sale price and are getting sticker shock at the fact that they are now more liklely to lose money than to gain appreciation.
Another reality is that the rising taxes are simply too much for many people to carry.
I am not wishing for a crash, but a return to some norm would be nice.
"Worth" is now.
Like the Stock Market, you never lose money unless you sell.
Some like to ride out the storm on their ship while others take to the life boats at the first big wave. Then again some go down with the ship.