Long time housing bull, David Lereah, chief economist at the National Association of Realtors (NAR), finally admitted to the Wall Street Journal that "the air is coming out of the balloons."

Mr. Lereah still denies a outright bubble burst in the housing market. But his view on the state of reall estate market is turning bearish to say the least.

The old saying goes like this: what goes up must come down. Just wondering in which order these real estate participants will give in to true and real market force (the old supply demand curce).

It seems like the mortgage and refinance companies are taking the first hit. Will this be followed by home builders? then followed by deep-in-debt real estate investors? Then a couple of years later, home owners will be hit by the balloon payments on ARM mortgages? We will see how it plays out itself.

I bet that real estate historian must become a hot commodity pretty soon.