Red-hot housing markets stir fears of busts - Stocks & Economy - MSNBC.com

Although 30 percent of the home markets have increased 30% or more in three years, only 17% of the hot markets in the prior 20 years ended in a bust. Fear of a housing bust is early and over-done. Resort properties in some markets are too hot but they have more to run before falling back.

Jim Cramer reported that the moment GM and Ford debt were down-graded today, home building stocks jumped up. The market reads that the Fed has little more room to raise rates without causing much pain in companies like GM. When the Fed backs off the short rate increases, the end of the housing boom will be in sight but still many months away from the peak.

The bottom line is that if you need a place to live for the next 10 years, you should buy the best home you can afford.