To the people that think smart buyers are waiting for lower rates, YOU'RE WRONG. Interest rates are already low. The problem, the 500lb gorilla in the room, is that the last few years of free money, fraudulent lending and specuvestors have caused house prices to double and triple. The PRINCIPLE is too high. Without wage increases, unlikely with globalization pressures, or massive inflation, the only other variable is pricing, and the correction IS occurring in case you haven't noticed.