The "mortgage crisis" is only a crisis for people with one or more of the following:
low income, low credit score, unsteady employment, little or no down payment money
These were the "sub prime" borrowers who borrowed what they could not afford, and as hordes of them hit certain neighborhoods and parts of the country, prices went up unnaturally.
The above description did not happen in the wealthier parts of San Francisco. People here have very high incomes, very high credit scores, great jobs and a LOT of cash. But sub prime borrowers did bid up some of the poorer parts of our city.
Now.... from everything I see and hear about the areas that have been slammed with 40% price reductions, while loans are still difficult to get, investors are pouring in and buying the "REO" (real estate owned by banks after a foreclosure) properties. Sales are trending up in many areas where investors are buying more than one property each.... and to me that's a concrete sign of the bottom. These aren't the wanna be investors of the past few years... these are the investors who know what they're doing.
Here in the nicer parts of San Francisco, there are TONS of Buyers asking the question you are asking. Unfortunately the answer is largely that the market has not gone down overall... but if you look closer, some properties have gone down or stayed flat, while the best properties, the ones that "have it all", are selling immediately at the upper end of what they are worth which is higher than it was a year ago.
Meanwhile, there could be a property next door that doesn't have it all (no parking, or no in-unit laundry, or a weird layout, or not remodeled, or the unit or home is dark, etc, etc) and those are going through price reductions before they sell. Most aren't "down", but the Sellers thought just because the were next door to an "have it all" property they could get the same price. But buyers are being very picky right now.
So people with money are still buying... but they are being picky and are often competing for the same properties (hence the multiple offer stories) while skipping over the others until they're priced more reasonably.
So... if you're looking in an area that is down, it's unlikely to go down further as investors start to buy up the bargains. In areas that haven't gone down, don't expect it to drop now. And overall, with a TON of buyers swirling around waiting for the market to "drop further" and discovering it hasn't dropped at all.... you may see yet another uptick in prices.