When appreciation doesn't keep up with job market, your pool of buyers will shrink quite fast.Today there's a crazy race on High Tech jobs.

•Commercial markets sales volumes grew double digits percentage wise •Normal seasonality in housing sales sees a decline from July to August and from August to September, but just the opposite happened as sales volumes trended up in the fall •Demographics make the U.S. different from most developed countries, as the U.S. is growing in population rather than shrinking •Demand for housing continues to outstrip supply as the U.S. added more than 2.6 new jobs per new dwelling unit built in 2014 versus the normal 1.25 to 1.5 new jobs per new dwelling •Residential and commercial rents will continue to escalate Challenges in 2015 include: •Rising interest rates •Escalating construction costs •New residential closing disclosures and documents •An income-challenged Federal Government •Ongoing and growing regulatory requirements impacting real estate •Stalemate in Washington, DC Opportunities in 2015 •Rising new and existing home sales – ditto prices •Robust investor demand for commercial properties •Continued rising residential and commercial rents •Highly affordable energy costsThis is FREE to members.

I doubt much is going to be easy there with shrinking inventories in the ideal locations.

In A/B markets, available potential renter base did not shrink nearly as much as in C/D areas as unemployment wasn't hit to the same degree, you had already taken out your available equity, so when values fell, you didn't have to give money back since you were locked in, cash flow remained relatively stable since CF is not impacted by property value directly, and there was still a relatively strong base of renters, in fact perhaps somewhat increasing eventually as some lost their homes.  

Did her living cash shrink?

Money has been flowing to real estate, just look at the shrinking cap rates.I am in the same boat as you Ken. 

Fear on the other hand can be debilitating and may cause one to shrink back from taking action.

The cause for the increased debt is a shrinking middles class. 

Add to that it's only a 2 bedroom, and your buyers pool really shrinks. 

Sorry to say but your buying pool will shrink the higher the price point is.