Good point Kenneth, I didn't realize that most of these comments are over 2 years old.
Anyone who intends to keep their property long enough need not worry about fluctuations from year to year. Provided you can afford your payments and never have to move or divest, I sincerely believe timing doesn't matter much.
I think your 1-2 year recovery plan is a bit optimistic, however, given that i do not believe the foreclosure rate is going to let up anytime soon. The attached graph illustrates that we are currently between the subprime and option arm mortgage "waves". While I agree things look to be stabilizing now, I feel it would be foolish to act in opposition to information like this.