Comment: You seem to be asking us to

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You seem to be asking us to

You seem to be asking us to predict whether your house price is going to go up or down, which I don't think any of us is capable of doing. Bernanke has a policy of keeping interests rates at absurdly low levels, and that may be the principle reason why house prices have started to go back up -- most people buy with mortgages, so low rates translate directly into low payments. Certainly most people buying today would not be doing so if interest rates were where they were when I bought my first house -- 8.6%. So, things that will make house prices go down:

1. A rise in interest rates, despite the massive monetization of debt by the Fed.

2. Another crash in the economy.

Things that will make house prices go up:

1. Continuing low interest rates. Japan has shown that this can go on for a long, long time.

2. If the money printing by the Fed, already inflating the stock market, starts causing serious inflation in other prices, including houses.

As for which of these factors wins out, your guess is as good as mine. Of course house prices will go up or down for the usual local reasons as well -- employment prospects in the area, good public schools or bad ones, greater crime or less, etc.

In my view you should only buy a house if you really want to live somewhere for a long period of time, can readily afford it, and aren't going to be worried about year to year fluctuations in the price.