IMHO, 2001 was the peak of the “normal” RE cycle, and marked the beginning of the hyperbolic move in the credit markets (credit bubble).
That being said, if you can get a house in one of the better areas at a 2002 price, your risk is already largely reduced as far as the really big losses are concerned, IMHO. We do have to consider the future of the dollar, so buying a house at that price level might not be the worst thing you can do.
