I know that is the prevailing logic, but I'm still of the opinion that while the Fed can and/or will create inflation, they are somewhat inept at targeting where the inflation will appear. It's just as plausible that we will have soaring inflation in health care, food prices, energy while housing prices stay flat to slightly downward. In the event of a real inflation shock, what's to deter an even great segment of the population from strategic default to simply pay for food costs and basic sustenance. IMO, the current situation is a pre-cursor to what may take place on a larger scale. In that event, housing prices might simply collapse outright, while our currency goes down the tubes and we experience inflation shocks in other basic necessities.
That could be the faulty logic for the re boom and bust. Real Estate is measured through decades, not years. Things that affect housing prices are land, labor and commodities (building materials). Those things as of right now are still considered cheap/affordable. And since housing is an essential of life, other than food, clothing and transportation; it is a safe bet to say that buying re now is a good idea. The major fundamental analysis of re is Location, Location, Location.