Just like in the stock market, greed will eventually take over. The buyers and investors included who have had their hands tied financially as well as waiting for the "bottom" will start buying property. That may lead to an increase in competition for the best priced/positioned properties. Since there is such a glut of homes on the market this may be a good thing. But not necessarily for the buyer, which is why I've been saying now is a great time to buy if you have to or really want to.
If a buyer waits too long and faces competition for the house they want, they may end up paying more and giving up important contingencies in order to make their deal work. Right back where we were in 2005.
I do hope though that we will see a slow increase in value. If you look at 2000 to 2008 and factor out 2005-2006, we have seen a slow, steady, predictable and sustainable pattern of appreciation. As inventories start to get back in line, and lending improves under tighter guidelines we'll see happy buyers and sellers for a change. The last 4 years we've either had happy sellers or happy buyers. Of course if you are a traditional home buyer who occupies or buys a second home, or an investor looking to take advantage of this market or the next one will determine how you see the glass.
That may not answer your question, and you'll no doubt see a long list of responses. Some of which will be from the doomsayers who will never be happy.