My advice is when you see forecasts for the R/E market see who they are coming from and if they have anything to benefit from their forecasts. The NAR and CAR have both been backpedaling as of late. Several months ago they were saying there was no bubble and appreciation in CA should continue in the 10-15% range. Now they are saying they are expecting a soft landing for bubble areas.
My advice is if you do buy don't plan on it seeing huge appreciation and even perhaps a decline. But as long as you think long term, stick with a 30 year fixed you can ride out any decline.
http://thehousingbubble2.blogspot.co...s-down-11.html