My crystal ball is in the shop for repairs:) Start thinking about the now, In the time period where people purchased or refinanced at inflated prices everyone got hurt. However we now have the opposite. Then people were fighting to get a home. Now they are sitting and watching the investors snatch up the properties. People should be fighting to get a deal with an incredibly low interest rate. If you are in a position where you can rent the one you paid to much for and buy a bargain home now. You will average out ahead. when rates go up 2% your money buys 20% less home.
I wish we all had some idea where the market is going - In 2009 the economists said that they felt prices would be "back up" to those prices by 2011 - which was 2 years ago and I still see them going down. In the Grants Pass area prices have dropped approx 52% over that time...that hurts everyone I know. Real estate always comes back though- it is one thing you can count on - the regular supply and demand theory. They arent able to make any more land!