Have you read the Barron's Magazine article reviewing the recent Case-Shiller report about the housing market? If not, it is also available online with a search for the magazine and the name of the report. Recent legislation should also help to shore up the housing market.
The best way to know the value of the home you are buying right now is the appraisal value. Appraisers are being very conservative and cautious these days, so you are in good shape with your purchase. Moreover, it sounds like you really like the home and the value of living in a home that you love is incalculable.
Good point on the mortgage rates. Right this moment a 30 year fixed is around 6.875%. It's gone up quite a bit in the last month or so, but it still is low- historically. When mortgage rates go up 20%, you monthly payment increases by about 10%. That's a general math rule. So if you spend 6 months looking for a better deal, and rates go up to 7.5%, you haven't really gained anything.
I don't agree with the 1999 theory, either. That's too simplistic, and I don't think the home seller would acknowledge that either. Good luck, and thanks,
Let the buyers remorse go and enjoy your new home!!!!
Let me stop you right there. Please don't think that you have to make money on every transaction. If the home is, as you state, "very desirable to my family and the home is in impeccable condition on the best lot in development." AND you plan to be there for a few years, then you are not overpaying.
Think about the pleasure of raising your kids in that home. Forget about the $5,000. You will enjoy the place and so will your family. If you want an investment, buy a tenement and rent to Section 8 families.
Keep the two concepts separate, your home is not an investment, it's your home.