I agree that the prices will continue to drop over the next nine months. In response to Nathan's answer, The Economic Development Corporation is looking for ways to diversify our economy. The fact is that buying a home now, to live in as a home for the next 5 -7 years, is still a good buy because prices will begin to modestly appreciate over time. We should expect to return to a normal market (pre-2004) over the next 18 months. The fact is that Fresno and the Central Valley, in general, is still the second most affordable place to live in California (the first being the high desert). Our population is expected to double in the next 15 years. Basic supply and demand dictates that with equal supply and more demand, prices will increase.
The same is true with investment property. Although, if it is purchased now, the buyer may see some modest depreciation over the next 18 months, if it is purchased as a traditional real estate investment (i.e., intending to hold 5 - 7 years), there will be a profit. The lower prices also mean that more properties will cash flow sooner.
If you wait for the "bottom" to hit, you may be too late. We won't know that we hit bottom until 3 - 5 months after the fact.