Hard to say, timing the market is hard. There are reasons it could continue to go up (if the economy continues to improve, limited housing stock, lots of high i

Hard to say, timing the market is hard. There are reasons it could continue to go up (if the economy continues to improve, limited housing stock, lots of high income tech workers). There are reasons it could go down / level off (it is a bubble, interest rates rise, fundamentals as to what middle income people can afford). As someone who is looking to buy in a couple years, my take on it is: a: housing prices cannot rise exponentially forever, there has to be some relationship between the price and people's ability to pay. b: if interest rates do go up a lot, then prices should come back down again, especially if it starts raising people's ARMs a lot. This would make the loan have a higher interest rate though, so it favors having a big down payment. c: Maybe I don't care about timing the market, it seems hard to do anyway. When I find something I can afford, I'll be holding onto it for decades, so how much I could sell the house for later on ought not to be a factor. Price is not the same thing as value.