1) Real Estate is cyclical. While prices are going to go down in the short term, if you plan on staying there for ten years, you will be able to see a profit then.
2) The most important factor that many people miss is the expected increase in interest rates. a 0.25 - .5% increase in mortgage rates will wipe out any savings from prices falling, if not even mean a greater monthly payment.
The time to buy IS now.