with wages falling and taxes increasing, who can afford higher priced homes? Economic 101. The housing bubble got bigger since early 2012 and will eventually continue its downtrend once novice investors realize that we are not close to a bottom.
I don't think there will be a collapse, just a gradual exit
I don't think the bursting of a bubble is ever gradual. The spike in interest rates when bonds burst will surprise many. ALL economic bubbles bursts so I think the probability of much higher rates is promising.