First -Do you need a place to live ? Then it is a good time to buy -after all , although we would all like to think of ourselves as savvy investors , the main reason most people buy a house is to have a place to live, so market conditions are secondary to the main purpose .
Second - Or are you buying because you want to make money - then the answer is in your own heart.
Prices are lower now than at the height of the market , so it is a better time to buy than at that point
prices may go lower , so it is not a good time to buy because you will lose more money .
So decide why you want to buy a home , and if it is the first reason , then buy the best you can afford
If it is the second reason , then do your own soul searching
Every buyer is different. Every house is different. Every person is different. This question is too broad and general to give you a realistic answer. Only by looking at the individual buyer, their situation and the particulars that are unique to that person and the home they are interested, can anyone honestly answer the question.
When I think about the question "Is now a good time to buy," I think it is if potential buyers are purchasing within or well below their financial means and have a solid financial plan. I still enjoy a good peanut butter and jelly sandwich now and then --- with an ice cold glass of milk!
You will never know we are at the bottom until we start to rise. Interest rates are far more important than the price of any house!