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People here will do anything to buy a place, believing the'll be set for life from the appreciation. I like this quote from CNNMoney:

"With that in mind, FORTUNE decided to check up on two areas at opposite sides of the country that have seen spectacular run-ups in home prices.

Let's start in Orange County, which has caught a case of real estate fever as acute as that of any region in the nation. Yale's Shiller surveyed Orange County residents last year on what they expected home prices to do over the next ten years. The average expectation was a 23 percent return -- per year! That kind of unbridled optimism has caused buyers to stretch beyond their limits. Southern California has become a hotbed for "exotic" mortgages, such as interest-only loans."