Simply said, if you are thinking about buying the operative word is NOW. Sales prices are still down, interest rates are still low, plus the $8,000 tax credit has been extended and expanded to now assist qualifying home sellers with up to $6,500.
In a few short months we don't know for sure what will happen to the market. Sales prices may go up, and interest rates may go up...so you may end up not being able to afford as much home as you can now. Many markets are showing improvements already.
The NAR (National Association of Realtors) posted just yesterday on Twitter that Pending Sales have seen 9 consecutive gains, so it just goes to show you that things are getting better in many markets. If your waiting to buy in a "more stable market" you may miss the boat...buy low and sell high.