It's a declining market and time to buy a house if your job, credit and income are stable and you plan to owne occupy or can rent out the property with a positive cash flow.  Waiting for housing prices to fall could work against you: 

• As the economy recovers, interest rates will likely rise because the Fed will need to control inflation.  For example, a $200,000 home selling for $180,000 a year from now could have about the same payment if interest rates increase from 5.5 percent to 6.5 percent. 
• If home inventories begin to fall, prices will begin to rise and you'll have a harder time finding exactly what you want.  Home sellers will become less willing to negotiate price and terms.
• Homestead exemption is now portable for Florida residents wanting to move up or downsize.
• Are you renting or considering a rental, foreclosed sellers entering the rental market in large numbers will likely create a rental supply vs. demand shift causing rents to increase, making a home purchase more attractive than paying higher rent for a less than desirable rental.