I dunno, my personal expierience is so:
Bought first duplex about a year before the housing bubble burst, so this one was rather expensive (all things considered) Wife and I lived in one side, while renting the other. This allowed us to save money to buy the next place. We purchased this duplex using a FHA ARM loan which has worked out *incredibly* well for us. It started at 4.25% and has gone down every year since, our current rate is 2.213%. It is linked to Prime and can only go up or down a max of 1 point/year and maxes at 9%. We pay extra on this property every month to try to get us in a better position when the interest rates start going up, at this point it's paid down enough that even if it goes up to 9% we would still be cash-flowing (extremely slightly). The horror stories you hear about ARM loans are due to the fact that many were non-FHA and were predatory in the *extreme*. (When we were in the process of looking I can't tell you how many people we met that claimed they brokered loans on the side and offered to close the loan from the back of their cars)
Our next property we purchased was another duplex in a much better part of town. All things considered it is a infintately better property (4x lot size, 3 car garage, 9 car dirveway, beautiful location). We aquired it on a short sale for less than 30K difference from the first duplex and 80K less than what it appraised for. Again, we lived on one side and rented the other, which allowed us to save money, plus we were cash flowing slightly from the first duplex.
We started a family and realized that we were outgrowing the second duplex due to # of available bedrooms. We started looking for a single family house, bought it for 40K less than the asking price in an even better area (basically surrounded by lakes and shopping area less than 5 minute walk away)
I guess the point I'm trying to make is that it matters more whether someone is in it for the long term or short term and whether you can make money from the property. My wife and I are long-term thinkers and we are going to hold on for as long as we can and hopefully pass them onto our children (mortgage-free). Another reason we bought them was to hedge against the next recession by having fiscal alternatives to our 401K's. Another benefit is that we have a place to live. I don't really care if the eventual price I'm paying is double for the property because I'm still cash-flowing on the duplex's. Plus all of our loans are under 5% my parents and older family members have all said that their interest rates on their first houses were in the 18% range, so 5% is a screaming deal. Yes, the property market is heating up, prices are rising, but interest rates are still at historic lows which make purchasing property (esp rental) now a wise investment. Personally, we're done buying properties for a while and will probably wait until the next recession to start purchasing again.
The only people that care about the short term interest rates and markets are the flippers and I personally would never never never buy a property from one of them. They do the absolute shittiest work for the least amount of money and then try to sell it to unsuspecting buyers for the max amount. If you buy a house from a flipper I will pretty much guaruntee that there are corners cut, shitty workmanship. It may hold up (long enough to make the sale) and look good for a few months/years but sooner rather than later you will be fixing/replacing pretty much everything they touched. Newly built houses are IMHO are a close second in terms of being poor purchases due to the fact that most builders don't care about the long-term. If there ever is a problem, you'll likely find they went under and started up a nother biz under a different name and your left holding the bag. I wouldn't buy a house that is post-mid-70's. Brick was real brick, not brick veneer, builders cared and they just last for ever