With inventory pushing 25k I dont think anyone will have a problem with finding a house they like. I agree though you should scout around and find the area or neighborhood that you would like to live in. Then watch the prices for that area and wait until they fall into a comfortable price range for you.
Never ever buy on the assumption that prices will rise in the future. Maybe they will and maybe they wont. I would be more concerned with how the numbers look on paper when your ready to buy. If its a good deal right out of the box than you have already won. And if its a good buy then who cares about what the market is doing at any given time because you have a nice house with a payment that you can live with. Its the amatures that get carried away and drive markets to new levels then proceed to lose their butts. I think all of us here will be just fine.
Seeing as you wont be gaining equity any time soon I would look at it from an investors point of view and wait until your mortgage (fixed rate) would fall in line with the current rents. Then you would really be reaping the benefits of home ownership.
