Personally I didn't feel it was that big a spike. It was however a seller's market which will always up property value's. Its all about that old supply and demand thing. We definitely are behind the rest of the nation as whole. Now is a great time to buy but as far as speculating about appreciation...that's almost impossible to do. Real estate is the still the safest investment you can make. Perfect exacmple...Marion Davies invested heavily in real estate and when William Randolph Hearst wound up in a financial bind she sold property to bail him out! That's pretty good odds if you ask me.
Good luck and if you have any other questions, don't hesitate to ask.