Here in Tucson, AZ the inventory is down, demand is up. Causing prices to go up at a level where comps are not painting a clear picture of a properties true value. For many buyers, I am writing 2-3 contracts before we are able to get them an accepted contract. Many have to lose a couple before they figure this out, and as a Realtor it is never my place to "talk them into" a property.
To answer your question directly, for the Tucson market I feel when the FED is done buying down the rates, and 30 YR Fixed interest rates start going up, when we see 4%, 5%, 6%, and 7%-many buyers in hindsight will wish they had bought. No way interest rates can stay this low forever.