I agree with Durenda. We are all asking the same question, no kidding. All of our clients want to know, our neighbors and extended families want to know...., but WE don't know. In my opinion the market cannot go down much further, the bleeding has to stop somewhere and at some time. One thing you have thought about I am sure is "...what if I wait too long and prices start to go back up again?" --- Yes, that can happen. Maybe not for a couple years many are saying and some expect better prices by spring and into summer, but not drastic.
After all, Home owners are people too, with feelings and thoughts about how to deal with all of this. They are hurt, scared and worried about the price they will get if and when they must sell. If they owe lets say $450,000 on a home and it "should" have appraised at $650,000....but due to market conditions they find that compareable properties are selling for a lot less, lets say about what they owe... then how in the world can they sell and walk away with nothing? Its tough on people who really cannot afford to take such a loss, but there are always those who just wait for the chance to jump on a great deal and will buy distressed properties.... its just business to them and most have the attitude "hey, if I don't jump on a good deal like this then someone else will." Which is true.
In the end, I too will buy distressed properties... and have bought 4 homes this year personally. From my standpoint it just doesn't seem as though prices will fall much further however and there will be those waiting for that great deal who will miss out (as is always the case) and later say.... "darn it, I should have found a way to buy when the market was down....". um hummm. Its like that.
All my best,