Let's see; 1) Tens of millions of Mexicans pouring in. Population 1986: 240,000,000, Population 2006: 300,000,000...this is 3rd world size runaway growth! 2) Super low interest rates, the Japs and Chinese keep 'em low so Joe can borrow and buy Toyotas, Nissans, Kias, and stuff at Wal-Mart. 3) No-qual, no-doc, interest-only loans to ANYONE, even illegals. 4) FOUR TRILLION in new debt in 4 years from the Greenspan housing bubble and refi party has kept the economy going. 5) Fed support, low rates and tiny 1/4 point hikes, so they don't pop the bubble. 6) Quick, easy profit from speculation and flipping houses. 7) A mania of historic proportions. 8) Super bullish confidence that the Fed will support the markets no matter what happens. 9) Wal-Mart, the HB's and Burger-King are hiring the Mexicans for low wages 10) Huge stock buybacks. the owners have made BILLIONS off foolish debt-ridden home buyers.
So why does it end? IMHO...ONLY higher rates can pop the bubble and start things going downhill...so until that happens every dip will be bought.
Granted, but when it ends it will be vicious. ~25% homeowners buying on interest-only loans these days. Plus how much more upside to homebuilders do you think there is? I think RYL has gone up ~%70 already this year. Good luck to all investors regardless, but am 2500 shares short on this dog.