Prices will go down, but I don't think we'll see a big crash.
People are grossly overestimating how hard it is to buy now. We are literally going to be closing on a guy buying a house for 3 times of what he paid for his current house. He has 4 judgments against him with one pending. So right now, he obviously can't make ends meet on a house at 1/3 of what he's about to spend. Now he's got quite a bit of equity in his current house due to the increase in value. He's going to be paying the judgments and the pending judgment, but please tell me how he is qualified to have a mortgage payment that will be nearly triple when he can't pay his debts on his previous mortgage.
It's a joke. We see people getting mortgages with horrible credit scores and shitty income/debt ratios. The myth of "buying is only for the upper class" really only holds true in places with insanely high home prices as the loan originators just can't get the #s to work. In the bulk of the US, you still have people spending way more than they can afford and they'll never be able to refinance if rates go up and won't be able to sell if values drop. Not good.