All this speculation is good and well, but expect to be stuck with a house when the market finally turns. It will turn fast too, mark my word. No big deal though if you don't mind hanging onto the house and it makes financial sense as a rental. The previous poster made a good point about true market values...whenever a house sells for more than you could rent it for, you're in a bubble and it WILL correct eventually.
I think there's also a bubble in early Porsche 911 prices corresponding to the RE boom and easy credit. I'm flipping these cars a lot, and the money's good, but I won't feel too terrible if I'm "stuck" with an early 911!
