Full disclosure: I’m a long-time deflationist who sold to rent (bubble sit) in 2004, buying again in 2011.
IMHO, and this is only an opinion, I think that prices and speculative activity are far too high to call this a “normal” market.
That being said, Rich Toscano, the brilliant and very well-respected owner of this blog, has some information that can be found on the home page of this site indicating that housing prices are not in bubble territory at this time. There is no doubt that prices are high, though, and Rich’s graphs and data will show you how today’s market compares to markets in the past.
I would highly suggest that you read all of Rich’s articles as a starting point. It might help you decide whether or not this is a good time to buy, and what you might gain or lose depending on your choices.
It sounds like you’ve been very responsible with your money. That makes it more difficult to think about losing significant sums.
