"The prices of the property that you can afford will be higher in five years. The mortgage rates you will pay in five years will be higher than now. Buy the home you can afford in the best area available," he said.

Harrington says use a fixed-rate mortgage so you won't suffer monthly mortgage increases, take a higher rate to avoid closing costs if your cash is short, but don't buy a home if you truly can't afford it or may have to sell quickly.

Stephen J. Hanleigh president of the San Jose, CA-based Santa Clara County Association of Realtors doesn't completely agree. He says you should buy based on your true need, not because you think prices will rise.

"Don't treat housing as if its some kind of commodity, like stock or pork bellies. It's a very tangible, useful product that is difficult to duplicate, it promotes strong emotional attachments, and it isn't meant to be a 'quick buck' venture. You have to nurture it, and that takes time and commitment to maintaining it over the long haul," says Hanleigh, also broker-owner of Realty Center in San Jose.

Condos in the Northeast have rallied, and are now selling for $200,000 to $400,000 depending on the square footage and location. These same units were in the $40,000 to $90,000 range 9 years ago. How can you be sure they will still appreciate some more? Well nine years ago clients were asking that same question in a different way. They'd ask, 'If nobody wants these units today, and I buy one, what makes you think anyone will want them when I'm ready to sell?' " Hahn said.

"In a rising market, my first response to the buyer is to stay calm. Not that they will, but as their Realtor, I need to keep them rational. They have to decide before they make an offer how high they can go," she said.

"Find a Realtor in a company that you like and then stick like glue to them. It's imperative that you get with a Realtor you can call your own. All too often buyers think they have someone looking or keeping an eye out for them and their needs, but the truth is, a Realtor in a busy market has time for the clients they are contracted with," Holte said.

That applies for both new and resale homes.

"Building directly with a builder and not using an agent is really just like buying a FSBO (For Sale By Owner) who is going to keep the money in his pocket and not put it into the buyer's. Unfortunately, many buyers are unaware that their lack of loyalty really ends up costing them in the long run because they don't have anyone looking out for their interests," Holte said.