Although there has been a prediction of a huge wave of foreclosures peaking in January, I cannot say for certain that the result will be lower prices in the Spring.
Forecasters predict that banks will finally come to their senses and have to unload the inventory they have been holding onto in hopes of getting market value in a declining market, but to "bank" on that? Nobody can say for sure.
It might be a good time now to take advantage of the inventory available, and of the deadening activity in the Winter. Sellers may be more motivated during the slow season, but again -- nothing is FOR CERTAIN.
The best time to buy is when you need to buy and can afford it. Because a solid flip opportunity may be a thing of the past for now, it would be wise to buy when you know you can stay put for a few years in order to take advantage of the declining market's prices today, and the possible appreciation during the recovery of the market next year.