<p>I live in a suburb very close to Boston. The prices are skyrocketing here. Developers are buying normal homes and tearing them down and building new homes. The location and schools make the area desirable. I am not sure, though, who is buying the homes. I actually think a few have been sold to folks from California. We live in a family neighborhood and I am not sure how young families can pay these prices. I suspect inherited wealth. </p>
<p>I live in a small town in the Southeast. A portion of our market is very high end second homes and they have been selling like hot cakes. The regular part of the market is doing well but I don’t see a bubble. I have a friend who is a mortgage broker and she told me that even though the market is good she hasn’t been busy because most buyers are paying cash.</p>
<p>I was wondering what the actual definition of a housing bubble is, so I googled and got this gem:</p>
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<p>I always thought the first rule of defining a word was NOT to use the word in the definition.</p>
<p>This one was more helpful:</p>
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<p>Sounds like Palo Alto could be at risk based on the descriptions given in this thread.</p>