And they will continue falling. There are many factors that will contribute to this, not the least of which will be another wave of foreclosures in 2011.
This is a great time to buy a home this year, next and the next...get into investing now.
Like Warren Buffett says, when people are fearful, investors buy.
No one knows what tomorrow holds. If I only had a crystal ball:)
If you've seen a home you like, you can negotiate an optimal price. Just make sure you're buying a home with intention of owning long term (minimum of 5 years).
Hope this helps!