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will the Housing market crash in 2006?

I have been watching the housing market, it is obviously over priced, and the sentiment is that the party is over. Does this mean prices will decline, and by how much?

Public Comments

1. Oh great ! He/she HAD to put THAT in my mind! Anyway, I am living in south New Jersey, and I know that the majority of the real estate market is WAAAAY over-priced here. I would believe that the bubble would HAVE to burst before long. I could easily imagine that prices will drop by a third here. I just hope it is not too soon, as I plan on selling my home later this year.
2. My analysis is that all return on all long term assets are very low: GreenSPan Con-UN-Drum. How low can trhey go? When all return on every assets are at the Market value of their interest rate risk then people will prefer cash rather than any long term assets it is Keynes' Liquidity Trap. Till then the housing market like any market can get higher than they are now. How low can they go afterwards? it is difficult to give a price but I would say pretty low. It should go down easily to less than 10% of today's market price.