It should for awhile, at least. The Fed is pumping so much liquidity into the system that just about anyone can get a low-interest loan. That's more dollars chasing houses, which should tend to put upward pressure on housing prices.
Unfortunately, that's causing a bubble in prices much like we saw in the Dow during the 90s, and it's probably not sustainable.
Whether that will come to an end this year or not, I rather doubt, but it will definitely come to an end. Greenspan can't continue to increase the money supply without major negative results.
Real Estate will alway be just fine. The only time real estate takes a big hit is if a certain area losses massive amount of jobs, and usually only in areas where the prices have rose significantly in the previous years. As long as local prices have not increased 30% over the last few years and the local economy is in decent shape, Real Estate will appreciate.
'Fannie and Freddie Were Lenders': U.S. Real Estate Bubble Nears Its End