Homewarming

Attended a house warming last night. A coworker bought a villa 5 minutes or so from work. Nice place, great food. But after looking around at the price of places here in Florida anything near a suburb or city is absolutely incredible. I firmly fall into the camp that believes most of the country is in a real-estate bubble and that prices are skyrocketing for no good reason. Heck in my area prices have risen maybe 50% in one year...perhaps 6 months. I firmly believe people have been using non-standard mortgages to afford houses outside of the their price range and when interest continue to go up people are going to be squeezed. Houses are going to get dumped and prices will fall. Now if someone purchased an affordable house intending to live in throughout the rises and falls this is no big deal. If someone is wheeling, dealing, speculating, and flipping then they may get burned pretty badly. Now I know very little about real-estate but when prices change this much this fast something has to be driving it and for the life of me I can't really figure out what that is. Maybe the area is growing that fast but I don't see it. I think low interest rates and high selling values for houses have created a fervor that will die quickly when the interest rates come back up.