Why are prices so high?

So prices should be dropping like a rock in New York now, I suppose.

Just like a rock falling in the abism.....

Good question. Can someone please explain why home prices are rising when income levels are historically at a relatively much lower level. Can someone also tell me how housing prices will remain "high" when the creative financing fueling this is drying up? also, pats/red-sox have nothing to do with housing prices. job growth/stable emploment do. No jokes please as this is a serious matter.

Well, it makes about as much sense as any other explanation for why the median house costs 3x more than the median income can afford.

Except for the rioting. Why are houses more expensive in a place where the people burn things every time the local sports franchise wins something?

whiterook72, home prices aren't rising. The August S&P/Case-Shiller Index came out today and Boston prices were down 3.6% from a year earlier. This (falling prices) has been the trend for awhile.