Housing is going to be a huge problem in the future. It is the primary reason for the recent economic expansion. Essentially, the US economy has gone from an internet bubble to a housing bubble. The correction could be nasty.
I think it is more than the luxury end. There are a ton of houses going up in a variety of price ranges. But, the median and average numbers have increased, meaning the definion of luxury has probably increased.
I hope it's a soft landing. My concern is Katrina's oil shock will carry through the winter season and really prick the consumer sentiment.
There's beed a great deal of press on the initial signs of a pop. As Drum notes, median prices are down. Inventory is increasing. The last figures of new home sales had a huge and out-of-character increase in the West. In short, it looks more and more like a top right now.