It is important to realize that Real Estate is Local, by that I mean what is going on in one area may not be the case across the street.
Every area seems to have been hit with declines,are we at the bottom.I sure do not know. I hope we are,but more importantly what are your needs.Where do you need to be relative to schools,work,shopping etc.
Find an area you like and do the research. Then go look for the best deal. Selection is good right now.
Hope this helps.
I would tend to agree with you, that we aren't yet at the bottom, but it seems as if we're nearing it, because sales are picking up, as well as pending sales. Only time will tell.
If you're trying to time the market, be careful, because even a 10% additional drop in prices will on average be offset by only a 1/2% increase in mortgage rates.