Prices are at record highs currently, but that's not an indicator of a bubble.I also take what economists predict with a HUGE grain of salt. 3 years ago, many were saying that we'd see a correction in 2-3 years.

This "stagflation" took everyone by surprise (even the economists).

If wage goes up 5% and housing 5%, then economist will think that's reasonable, but if you're 4x leveraged on a house on a fixed rate mortgage, then you've made 20% on appreciation that year and blowing past the savers :)

As far as a national level recession forecast, many economists seem to predict around 25% for this year.

Additional inventory will help contain rapid home price growth and open up the market to prospective homebuyers who are consequently — and increasingly — being priced out,” National Association of Realtors Chief Economist Lawrence Yun said.

Back in the 30's a real estate economist named Homer Hoyt discovered that real estate prices seemed to ebb and flow on an almost perfect 18 year schedule.

Some well known and respected economists are even making pretty dire predictions and it's enough to scare anyone.

“After five consecutive months of gains, the IMI recently began to plateau, with many markets holding steady and a few experiencing the ups-and-downs that are typical in a choppy recovery,” observed NAHB Chief Economist David Crowe.

I attend many seminars and listen to a couple of Economists forecasts and predictions for the upcoming year for the last 5 years.  

The NAR economist first says that investors are pushing out 1st home The CNN report is consistent with the media's and public's lack of understanding of RE investor activity.The continued use of the word flipping does not help investor image or PR.