> It will not crash. There maybe a temporary double digit dip in prices described in hyperbolic "end of the world crash" terms to demand government intervention to prop up prices.

This is probably true. In the short-medium term housing will not be allowed to crash for the simple reason that homeowners vote. The soundness of the economy in general will be sacrificed to pump house prices.

This feeds a feedback loop that makes housing an even more attractive place to park capital, further driving up housing costs.

Of course eventually this gets so unbelievably ridiculous that we have some kind of revolution. Look for $2m starter homes before that happens.