The market is going to slow down as interest rates climb. As rates climb the people with adjustable rate mortgages that were borderline able to buy will have to either sell.... NOW or get foreclosed on. This is about where we were right before things got exciting in 2007. If you are in a good place, like the area, and don't need to move? Save like a mother fucker, know the value of the areas you want to live in, and start to look for deals at the end of the year. I'm just some dude, not a prophet, not a financial advisor so take that for what it is worth.
See, and I don't even think the interest rates will matter that much. Sure - rates go up, prices will go down as financing becomes more dear but it won't change the transactional nature of home sales. I think credit got way too goddamn easy again. Go google "subprime loans" or, for true fun'n'games, "subprime car loans" or "student loan debt" and tell me how we're going to walk this one back gently, no interest rate shenanigans necessary.