I'm a Realtor in Colorado Springs, however, I've been doing some research on the area for friend who bought a condo as an investment a few years ago. A lot of people may be able to hold on until the market picks up again, but there are also a lot of people like my friend who are going to HAVE to sell instead of lose money every month. I believe there are some excellent deals available if you talk to the right seller and his agent understands things such as short sales. I do not see ANY inforamtion either here or on realtor.com about distressed sellers. That is a bit odd to me. I specialize in short sales and foreclosure prevention in Colorado and I haven't been able to locate an agent yet that has a similar specialty. Such an agent would know where to do to get you an amazing deal on a property. From what I'm seeing, I'm certain they are there!
So make sure you get an agent that is looking out for what is in your best interests. I think this is a great time to buy and that you can really get a good deal if you are careful!
Take care out there and good luck. And if you should want to ask me any questions or get my opinion, I would be happy to pass on my research to you.