Because govt programs like FHA allow people to buy houses solely because they want to, and some people are afraid if they dont buy now they will be priced out forever.

Others are buying because they want to get $8000+ credit from the govt (before that bailout goes away) not realizing that they are overpaying for the house and it will probably be worth $10,000 less by the time they move in.

This is a very nice 60K-80K house in many parts of the country, that would rent for $500-$600 a month.

Foolishness replaced common sense for many long ago. (Millions of NOD’s ago)