[snowman]

Wayne has been on this real estate bubble thing for quite some time now. Eventually he will be right, but in the meantime his is loosing his shirt. People said the bubble would burst in 1977, 1987, 2000, 2002, 3, 4, 5. It did a couple of times, but that $30k house from 1974 is now going for a cool $1,000,000. Even if it burst, say went down to $700k, so what??? You can't time real estate investment. Todays prices may be at a peak, but the same thing was said a couple years ago, and yes, local CA real estate did almost double in the last 2 to 3 years. You buy a house you like and can afford and intend to live in for 10 plus years, and you will most likely not lose. If it goes down in price, so what, you have fixed payments that you can afford. Rent, on the other hand, can and does go up, sometimes a whole bunch.