If the trend continues I may move to the sidelines at some point and wait for the market to swing back down.

I know investors who have sat on the sidelines waiting for a market crash since around 2016.

Do I want a new sideline to replace my buy-and-hold rentals or am I trying to build a new business that was scalable?

Rising rates and negative news stories could put Buyers on the sidelines.

Those who think they will wait for the bubble to burst before investing will likely be sitting on the sidelines for quite some time.

I don't think this is the market to sit and wait on the sidelines quite yet, but that may be coming.

After we didn't get a house and decided to sit on the sideline I started thinking about using the money we had (plus some that we have saved until now) and buy real state instead, long term rentals to be specific.  

If rates drop into the high 5's over the winter, many buyer's will return from the sidelines and we will have a hyper competitive spring market. 

This is the new normal, and I expect the market to crank back up in the Spring as seller's come to terms with the reality of rapidly increasingly supply, and buyers get off the sidelines and realize interest rates aren't going to plummet and there is always a cost associated with doing nothing.That being said, we remain a loooooong way from the pendulum swinging to a buyer's market in most areas, so I don't see a major dip in prices, just a slight correction and cooling off of appreciation.  

I have a lot that are standing on the sidelines but the ones that are going for it right now are getting amazing price drops and concessions.