They are irrational.

It is completely irrational to hope for a loan of that size for a borrower with pristine credit, good job, and say, 10% or less?

I think they call that irrational exuberance.

The stock market is often (some would argue: always <g>) irrational.

They're totally crazy, irrational, and absurd, but we keep going through it because we need the eggs.”-- Woody Allen, Annie HallI think you’re both being pig-headed, Steven.

In my market (phoenix), in some price ranges, in some neighborhoods, pricing was irrationally low, and it generated some amazing deals, and garnered a lot of press a little after the music stopped.

You only have to look at this graph from Robert Shiller's latest edition of "Irrational Exuberance" to know its going to get ugly at some point.

During the dot.com era Alan Greenspan called it 'irrational exuberance'.

More likely, prices will decline in many places, especially anywhere that's seen massive runups.Look at Shiller's analysis in the latest version of "Irrational Exhuberance".

Please look into his book called "irrational exuberance".Please also be advised that when one includes things like new homes in an index, things like seller insentives can vastly effect the real value of the home.For "Makessence", Yes, history will repeat itself.