The key part of my comment is the “they couldn’t afford” part, more than “2003”. Prices in 2003 were much more reasonable in most areas, but if they couldn’t afford it then, and didn’t sell by 2006 when prices finally stopped rising, they’ll likely be underwater and/or forced to foreclose or sell at a loss unless their income went way up.
The issue of high inflation, right now at about 2% according to MSN, can be managed IMO with a savings account, CD, or bond that gains at least 5%, to cover inflation and taxes on the interest income.
With the alternatives being the stock market or real estate, I’d take a 2% net gain on cash, over a devaluing house, or a market that goes down on the fed leaving the rate alone.