According to various anecdotal evidences the housing bubble had already burst, but as long as we don't feel the consequences, we will not notice that. The common story is when a person purchased real estate to flip it for profit and now this property hangs for sale for several month, because it's not easy to admit the loss and sale it for what it is worth now. There are so-called "ghost cities", where nobody lives and everything is "for sale".

But I just received spam where someone offers me a mortgage for 1% payment and no credit check. I suppose we will see some real downward price movements as soon as those crazy offers fade off.

In the meantime look at this story – Boomers just don't have savings to retire. Nothing, except their real estate, which is still quite inflated. I suppose there is a significant number of people close to retirement age who did not borrow up to their eyeballs and still have good chunk of real estate, but not much of other savings. The only thing those people could do is to sell their home and move to the cheaper area. The home price difference could be over $100k, still quite miserable, which will allow them to retire. Thus, we can see some aging people to move all around the country away from expensive places. The immediate result is the reduction of population is places like L.A., San Diego, NYC, Chicago and guess what? – expect further real estate price deterioration in those areas.