Some readers want to discuss lesser known bubble areas of the US. "I am interested in a thread on 'non-bubble' areas, like North Carolina, Georgia, the midwest, etc. We all know that California, New York, Boston, Florida and DC are in for a world of hurt, but what about the non-bubble areas?"

Another added, "The midwest is in an unaffordable housing crisis with the same mania as the west and east coasts. It is just that the dollar amounts to purchase a house or condo are not as high as on the coasts. The same false wealth is going to result in foreclosed houses."

And another, "I have been wondering about the midwest . I have been feeling all along that the fever/boom took the Nation."

One had an example, "My brother lives in a suburb just north of Indianapolis, IN. He bought his brand new 2400 SF+ home about 5 years for about $120k. The homebuilder bent over backwards to get people from this largely blue collar area into their homes and now many have been foreclosed."

"The homes in his community are now going for roughly $110k and the local housing inventory keeps growing due to continued building and foreclosures. He would be happy just to have any equity in his home."

The Chicago Tribune has this report today. "The Commerce Department Friday reported that the Midwest was the only region to eke out a year-to-year increase for the month, 1.1 percent, compared to February 2005. Sales fell 27.8 percent in the West year-over-year, 9.6 percent in the South and 13.4 percent in the Northeast."

"In Chicago sales are holding even or are down slightly from last year. Some builders are turning to buyer incentives, which amount to discounts, to keep sales humming. 'In certain areas of the suburbs incentives are increasing, so it is keeping inventories in line,' said Mark Gianopulos. Heavier incentives are in the Yorkville and Plainfield markets because a lot of big builders have inventory coming on line, he said."

"'With the slow start this year, some [builders] may have panicked,' said Phil Walters, vice president of a Libertyville-based division of D.R. Horton. 'There is a lack of urgency on the part of buyers. They are shopping around,' said Walters."

"'It's getting difficult to get your arms around who is shopping for new homes right now," said Mark Malouf, COO for Montalbano Homes in Oak Brook. 'The environment in Chicago has gotten very competitive in terms of incentives.'"

"His company also operates in Arizona, part of the Western region, where February new-home sales took a dramatic dive. He said speculators became a big part of the market in Phoenix, and, when builders realized the extent of their investor influence, many made an effort to limit their purchases."

"However, 'it was closing the door after the horses had left the barn.' Malouf said. Activity by speculators drove prices so high 'that we left the true buyers, the owner/occupant who wanted to live in the homes, on the sidelines,' he said."

"'We are trying to understand what it will take to get buyers back into the market,' Malouf said."