The housing market in the boom years of 2003-2007 will never happen again. That is a good thing. The market before was heavily inflated by criminal stock brokers making money off of derivatives and counting on the poor to not pay their debts. The housing market will recover and be closer to sustainable.
Yes I do think that the current housing market will recover. Every single day more and more people are born that are going to require a house to live in. There are so many people and so few houses. People love their house. It is the one place they have to themselves. Nothing beats a house in the business market.
The economy is picking up and people are also working from home doing side jobs to boost their income. With the recent tiny homes boom, more people can afford their own home wherever they want. The great thing is these homes are also eligible for loans. Soon people won't be reliant on landlords and can afford their own home.
No, I do not think that the housing market will ever recover. They are selling houses for way too much money now a days and my generation (20-30 yr olds) can not afford to buy a house and we don't want to be in debt because of it. They are ridiculously priced and not many people are buying houses anymore.