Right now there are roughly 7 million homes in the us worth of ghost inventory. That does not include properties that have notice of sales on them in the states where that is applicable. This year about 7 million homes will be sold. That means that we have one full years worth of ghost inventory, lets not forget that it is just a matter of time before interest rates creep up, probably next year. It depends on how long the banks take to liquidate the current ghost inventory. I have seen people in their homes for 19 months without making a payment and have more clients looking to short sale. In addition, it depends on how the employment market is doing. As people lose jobs, they lose their homes. It is too early to determine if the market has bottomed, and it is not the most important factor in buying a home. If you are an investor now is a good time to purchase the cash flow. First time home buyers should be more concerned with the tax brakes they get from owning a home. It is better than renting. Once you make enough income, you are either going to pay Uncle Sam or the Bankers. At least if you pay the bankers, you can live in a home and cannot be kicked out unless you cannot pay the mortgage. I don't care about trying to time the market. It is a losing proposition. buy for the right reasons.