Will Real Estate go bust in the future? Probably. A lot people on this forum probably weren't around to remember the real estate crash of 1990 and the whole S&L debacle. It only took 17 years for a repeat performance of greater magnitude. In a few years, people will forget all about the last crash. Optimism and the battle cry of "property values only go up" will return.
The lesson to learn is that you have to spot the trends in advance. Be careful about leveraging your assets otherwise when the crash hits, you're out of business. When the numbers don't pencil out, it's time to stop investing, sit on your cash and wait until it's time to buy again.
I don't think we'll see any sort of correction, absent some calamitous event, in the near term. The market is just getting legs. It's got awhile to go before it breaks into a full gallop - and the eventual trip and fall.