It depends. I believe the low end has already bottomed and is on its way back up. The upper end is still feeling the effects of a tight loan market, difficulty in qualifying and the lack of move up buyers. Move-in condition homes are king in this market - fixers are getting ignored except for low offers.
The good news is that just about anything you buy (see above) is going to be more valuable in the next 2 years. Does that mean we have more downward pricing in the near future - again, it depends. My crystal ball is in the repair shop.
Good luck! Just don't wait too long to purchase!