[Proud_USA_Republican]

There is always different dynamics for different markets.

Florida and California can't be compared to places like Seattle and Denver. But there is simply no way that many of these markets can continue double digit price % increases year after year if average salaries do not.
I don't care how easy banks make to loan money.

I think the odds of some massive real estate collapse are thin, but I do predict increased stagnation as inventory numbers continue to increase, including some price drops, even in the markets that have been the hottest the past couple years.
I just visited the family on Oahu recently. Although real estate in Hawaii is always been expensive, the price of homes have basically doubled to tripled in less than a decade, with most of the gains in just the last couple years. I don't care how low interest rates are. Eventually something has to give.

Your already seeing this occur in cities like Pheonix and Washington, DC.
Markets like Miami where there has been massive condo buildups and 10's of thousands of new units scheduled to be completed this year and next will get hit hard. The majority of these project are ofcourse higher end projects.
Just like I see around Seattle. Every large condo project going up around here are all these buildings where you can't get a studio for less than 500K, and condo fees are easily 500 a month or more.

[Eagles Talon IV]

I agree with everything you have said. Double digit increases in valuation are of course not sustainable. In the end the market will work as it always has. The excess supply of homes will create competition among the owners of these homes and when that happens prices drop and the supply demand equation will begin to move towards a more even balance. I believe that home prices will continue to escalate year over year but not as they have. Probably increases in the 6-8% range are more realistic.