I think the problem right now is that banks are not lending.

So people have to buy with cash. Think about this: if the bank takes 25% down payment, and lends, then there will be four times more buying power in the market, which will drive price up, or that is what I believe anyway.

I am not really afraid of rate going up. Rate does not go up for no reason. Normally when rate goes up, it means the general market is good; and when market is good, price rises also, and everybody has a good time. Just like 2006. When that happens, cap rate does go down, but appreciation is way way up, and that is where the big fat profit is.