Bear in mind that if this is a price bubble, and it bursts, you could end up owing the mortgage company/bank more money than your house is worth. This has happened up here, in Calgary. It happened bigtime in the UK. If it does happen it is a real bummer because you cannot even sell the house - since you won't get enough from the sale to pay back the mortgage.
On the other hand, if the bubble bursts, you could pick up the same type of house for much less. Of course, if it doesn't burst, prices will tend to keep going up. The article suggests that the Fed may be about to lower interest rates again and that this will sustain the bubble.
Ultimately, however, interest rates will go up - they are ludicrously low now - and then the bubble will burst because some people will be mortgaged to the hilt at low rates and will not be able to afford higher rates. This will tend to make more houses go on the market than there are buyers and - whoops! - down goes the price. Once the fall begins it will be like the stock market because anyone who can will try to get out of the market early, which will accelerate the decline. Of course, it is not as bad as the stock market because an overpriced house is still worth something. You can live in it and the price will one day go back up again, albeit not necessarily to where it was when you bought it. The last time house prices flopped in Calgary it was by about thirty percent, if memory serves. That is a lot of money.
