For years , we have all heard the so-called experts refer to the explosion in home buying and resultant rise in home prices as a real estate bubble.
The rise in home prices from (roughly) 2001 - 2005 was unprecedented. The consumer percentage of homeownerhsip was unprecedented.
About 3 years ago, the Real Estate Bubble Burst! or did it ? 
I would argue no, the real estate bubble did not burst. In fact, it is leaking air. and herein lies the problem.
Unlike, stocks and other investments. When a correction occurs, it happens (in most cases) much more dramatically. A stock market crash is on example.
However, real estate happens much more slowly. Many emotions are tied to real estate. Sellers do not just come in and take 30% of the listing price of their home. People reduce prices a (very) little at a time. Unless it is a short sale or foreclosed home. In which case, the home usually sells quickly.
Yesterday, the NAR reported a surprising rise in the sales of existing homes in July, surpassing expectations. However, this was a result of buyers picking up homes at discounted pricing.
Clearly, consumers do want to buy real estate. The buyers just want better pricing. If the housing bubble actually burst , we would already by at a bottom.
Instead, we have to wait until all the air leaks out ever to slowly. - wexzilla
Eloquently put, James.
Sales were up 4% here in July, at 3,800 homes sold, but prices were down something like 17% I think it was.
Jim - the good news is that buyers are out there. the bad news is the time it takes for real estate prices to adjust
james - it would be less painful to just 'rip the band-aid off' and deal with the pain and be over with, then watching this slow torture
james - Phoenix has been down more than 27% per the report -- that does not include previous years - i am seeing activity and other signs we are at or near a bottom
James, the bubble bursting is so relative to the area of the country. For example in Texas we never had a big appreciation in prices so there was no bubble to burst.
Gary - I agree , we have it especially bad in Phoenix and most parts of the west. I understand Texas has not had the same housing problems. I am glad. It is sad for homeowners to lose so much net worth in their homes and people falling out of their profession (mortgage & real estate)
This makes sense....I do think that its a leak, but not a true pop of the bubble.
I agree with slow leaking. I think it could have burst, but they keep putting their fingers on each leak.
a bursting of the proverbial bubble would have saved 3 difficult years. However, real estate just does not work that way