The BIS has a paper on "The housing meltdown: Why did it happen in the United States?" It is written by Luci Ellis, now the head of financial stability at RBA. It seems like the housing situation in USA will be down for the next few years at least (or even longer). One of the key reason is the tax deductable interest. (see sect 3.2) But it is hard to say if she is right, she also claim that there is no Housing Bubble in Australia. hahaha I will know when I sell my houses.