Price House Pop

I read everywhere about people cashing out and selling their homes in order to lock in profit. One question: where do they all live after they sell? I figure you have to either rent or buy a new place, or move in with relatives, right? Assuming most people are buying, and assuming that most buy in their own home market, are they really gaining anything? Aren't the other comperable homes appreciating just as fast? I'd like to see a story about what people who are cashing out are doing. Maybe they're renting and trying to time the market to buy again down the road. That seems risky, particularly if 10% + gains in home prices continue for another year. If that happens, those on the sidelines who hoped to time the market are going to need more than a tank in home prices, they're going to need a TANK. Seems risky to me - somewhat like the story I heard the other day of a young couple selling their 2 bedroom 2 bathroom apartment on Park Ave in NYC for $80,000 in 1976. They decided to "rent and see what comes along." Word has it that 30 years later, they're still throwing money down the rathole of leasing. Nice story.

Night.