Will the real estate bubble burst? What are your thoughts?

I was hearing some 'professional's chat about the economy today (which they were using real estate market as a key performance indicator) and the first guy reakons there's a 40% chance we'll go into recession. The second guy said there's a 100% chance we will, and even said this 2 years ago and is still saying it's so. They're saying that we're all so debt ridden and lots of these people have borrowed houses are nearly 0 deposit so with the interest rates so high, food so high and now fuel .. we're all feeling the pinch.

Consumer sentiment is down to a massive 25 year low i heard! that's madness. i'm sure he said 25 years.. which is too hard to believe. I'm sure he ment 2 1/2 hear low. The banks are finally get a kick in the stomach and are really getting cautious over their loan criteria.

I'd say the bubble will burst in the next 3-6 months .. if it hasn't in the last 3 months.

I think while technically we are not in recession, man are acting as though we are with consumer spending way don and access to credit at much tougher levels than same time last year. House prices are definitely starting to fall in the outer Melbourne areas, obviously closer to the city will take a lot longer to drop.

What I find interesting are the people who can make enormous amounts of money during recessions. I mean it's easier said than done, but there are people who thrive during times like this, and those people are the ones with heavy liquidity and large cash reserves. There are going to be some bargains especially in real estate over the next few months that's for sure.