In many places there was a pretty serious correction in 2008, no?
Bubble doesn't mean "pops and value goes to zero". It means something more like overvalued asset class that can lose value rapidly. If there is intrinsic value, it won't got to zero. Nobody imagines that of a real estate market outside scenarios that include major wars, etc.
House prices with any sort of scarcity are largely driven by peoples ability to pay (i.e. finance the debt).
Ummm... It was a bubble in 2005/2006 and prices corrected pretty significanlty from 2007 till about 2013. We bought our house in 2010 (not quite the bottom of the market here) for $186K - 2.5 years earlier a similar house across the street sold for $250K. A similar house on the next block sold for $575K in recent days. So yeah, it was a bubble that burst and now has re-inflated to even higher levels. If mortgage rates simply were to revert to mean (about 7%) that will negatively impact prices. If they overshoot (The Fed could find that inflation is tougher to fight than they thought) you'll see a buying opportunity again. Look at some home sales stats from the early 80s when mortgage rates hit the upper teens.
Bubble doesn't mean "pops and value goes to zero". It means something more like overvalued asset class that can lose value rapidly. If there is intrinsic value, it won't got to zero. Nobody imagines that of a real estate market outside scenarios that include major wars, etc.
House prices with any sort of scarcity are largely driven by peoples ability to pay (i.e. finance the debt).