Thank you. You can call me "Sir".
I expect several rounds next time we all go to GABP.
The current situation is tough to analyze. But in reality, the only way to beat deflation is with inflation and the seeds are being sown at this moment.
Exactly how all this develops isn't clear, but I do believe that 5 years down the line you will be happy with the deal, not because the house has increased in value, but because your mortgage payment will be lower than it would be otherwise.
If you bought a $200,000 house today with a 5.5% fixed, and that house is worth only $175,000 in five years but money is costing 8 or 9%, you made a good deal.
And in the meantime those interest payments are tax-deductible, while your rent is not.
Crazy as it may sound, back in the real estate frenzy they were saying "its all about the cash flow". Well now..it really is.
Just my .02.