I do think each persons perspective is based on where they live. There are so many different regions... and one city to the next can be a completely different market.

Housing is supported by employment and payrolls. Cities with low employment and high payrolls have fundamentally higher housing costs. The economy can support it. High unemployment and or low wage - the housing market will be a completely different story. Seattle - San Francisco - New York City.... they're going to command top dollar. The bright side of that is that as real estate appreciates -- usually figured as a percentage -- you're rewarded with a much larger appreciation. You'll also be rewarded longer term as the costs rise around you and you are living in a fixed payment home.

I'd rather "pay up" in a good market than buy anything in a crappy market.

^ Kinda what I was thinking. It may seem foolish at times, but when it comes to things like buying a house, I don't look at the world economy or even our national economy. I'm living locally, I'll see how my town is doing and base my assessment off that. Savannah/Chatham is booming (Savannah Port expansion, Gulfstream continuing to hire, etc) and houses are now being built in subdivisions that nearly died in the '08 crash.

I missed an opportunity last year due to an incompetent realtor on the seller's side, but I just went under contract for a house this week and I couldn't feel better about it.