[softwarecreator]

You are right, it's way out of control.  I still can't understand how the average family can afford a home in California.

I would hate to be one of the people who paid mucho $$$$ for their house when the bubble breaks.

We just bought a home in our area which is slightly below market value.  We got very lucky because the owners were desperate to sell and we got first crack at it.  Otherwise our choices we unbelievable out of wack to what we know the normal housing costs to be.

[Pessimist]

"I would hate to be one of the people who paid mucho $$$$ for their house when the bubble breaks."

No problem. They'll just walk away from the loans and let the banks (or Fannie Mae or Freddie Mac) take the hit.

And guess who ends up paying for that?

[ChocChipCookie]

We're in the Phoenix area, and home prices here are skyrocketing. We bought our house a little over two years ago and already homes in our neighborhood are selling for 200K more than that. For most people, their increased home values have little meaning, unless you sell your home and either downsize or move somewhere with far cheaper homes.