The specter of the so-called "fiscal cliff" is just a blip in our overall march towards an uncertain economic future. The beauty of it is that neither side can afford to really let it happen, no matter how much each side postures and blusters.
So . . . we'll end up with some bastardized compromise that will make neither (political) side happy. It won't be pretty, but it won't be the armageddon-like disaster the "fiscal cliff" promises.
What I'm saying is, pay it no mind in your decision. Look rather at the long term trends, in which real estate will likely continue to be a decent sort of investment, but not as supercharged as it might have once appeared to be.
And . . . z0mb has it right about location, location, location.
Long term, we in America have a reckoning with somewhat less. In a global labor market, Joe Sixpack can no longer command $ 60/hr union wages for a job Johnny Chen can be forced to do for peanuts -- to put it all somewhat crudely.
Otoh, more people who are hungry to succeed continue to flock to America. More people means more demand for a non-renewable resource: land. So, prices for RE, long term, will continue to rise, albeit more slowly.
Cliffs: Buy.
^^^ The above is as rough cut and crudely basic an analysis as you are likely to get, but I do believe in its underlying fundamentals. One man's opinion. <shrug>