[cpdiii]

"There is no bubble coming for another 2-3 years but it will make great story writing and the sky is falling catastrophe..."

This market is being held up by cheap interest rates. Many people with money are buying on a speculative basis because the return on their money in CDs and Bonds is so poor. Many of these same people got burned in the stock market or consider housing a safer investment. When interest rates go up a sufficient amount the investors will start moving money to other investments and the cost of financing a loan on a house will also go up.

this is a bubble.

[ladyjane]

It's a bubble but some areas won't go down as much as you might think. Take Boston, for example. No jobs are coming in but students are. All the 1 and 2 bedroom condos are being snapped up by parents of kids coming to school here.

It used to be it was just the kids from places like Korea and the middle east who were living in the very high end condos - including some of Bin Ladin's relatives. Now it's kids from CA and NJ who 'rent' the units from their parents.

Remember the days when you went off to college with your stereo. Then you went off with your very own car. Now it's your own condo.