So this is a Housing Bust
"Existing-home prices are as high as they were a year ago, while sales have receded only to 2003 levels. The credit goes, at least in part, to low interest rates. Fixed-rate 30-year mortgages averaged a modest 6.2% in the last quarter of 2006—well below a decade ago. That, combined with income growth, means houses in most areas remain affordable even though prices rose more than 50% nationally in the past five years. The surprise is that low rates are still keeping a floor under housing. Thirty-year mortgage rates are no higher than in June, 2004, even though the Fed has since pushed up the federal funds rate by 4.25 percentage points."