To the OP – when did you buy? If you bought in 2006-7, I’d be wary and consider selling. If you got a rental in a good area at 2009 or late 2011 prices, I doubt that prices will drop below those two nadirs.
As far as future prices, we have different factors that mostly cancel.
For appreciation:
(1) Mel Watt, who wants to expand access to credit via the GSEs.
(2) Possibility of future growth, higher wages, etc.
(3) We still haven’t exceeded the 2006 bubble peak
(4) 5-6% isn’t a horrible return in this economy
For depreciation:
(1) Julian Castro, who wants to wind down the GSEs.
(2) Upcoming end of QE3 (finally!) and higher rates coming. If the economy improved, better investments than property might also exist.
(3) 2006 was a bubble, might take a long time to exceed it. Prices in SD overcorrected to the downside in 2009 and 2011. Now they may have overcorrected to the upside.
(4) Investors are burnt out and can see areas with better returns
