The housing "bubble" burst in 2006/2007 in the US, meaning the greatly inflated prices finally caught up to the banks and borrowers. A number of economic factors considered quickly "corrected" the market, but the pendulum swung FAR the other direction leaving many home owners in negative equity positions (owing more than their home was worth). For instance, certain markets like California and Nevada were far over inflated in the mid 2000's. When the bubble burst, these property values dropped in some cases up to 70% (my friend purchased a home in Las Vegas in 2005 for $750K and it was appraised at $160K in 2010).The market is starting to correct itself, therefore prices are beginning to climb again yet at a much slower pace than it dropped. You will not likely see another "burst" again in the near future, prices will continue to climb, although it should be at a steady rate, not as quickly as it may seem. Some economists predict it could be 2025 before places like CA/NV see "pre-burst" prices again. Canada remained solvent longer than the US, but they are starting to follow suit in terms of the market now. You should purchase now if you can while the markets are as low are they are. You should remain in a decent position when you go to sell your home, although I never recommend selling in less than 5 years if it is your first home and you are putting minimum down. This will give you adequate time to build enough equity to cover selling costs and still come out ahead. Good luck.
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