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Only a very few markets on the coasts could be called bubbles. Most markets that have seen rapid price increases will eventually grow more slowly, or flatten, but not decline.

The housing market is driven by 3 factors:
interest rates. In 2001 Greenspan did one too many rate increases. If he does another rate increase in 2005, it will again be one too many. He needs to learn from history.

No Tax. A person who uses his profit from the sale of one house to buy a more expensive house pays no tax on the capital gain. There is trickle up activity in the market with the buyers at the bottom raising all boats.

Demand. The influx of immigrants is creating a demand for housing. (Legal and illelgal) immigrant IT workers buy a house within 1 year of being here. The unskilled, illiterate (legal or illegal) immigrant whose wages are allegedly low due to those greedy capitalists is usually not able to buy a house until he has been here 4 or 5 years. My suburb is overrun with these unskilled God fearing immigrants who work with their hands and get dirty... and have the nicest looking lawns ever.

If we cut immigration, we kill the goose that lays the golden eggs.... and the green grass.