Deals
I was just in a home last week - a nice location on a quiet dead-end bordering on a sprawling wetland.
This home was an end unit townhome with lots of windows, soaring vaulted ceiling, two bedrooms up + a loft. The price -- $125K! This was a foreclosure home needing all new carpet, around a $5-10K total investment.
The unit next door was a pristine owner-occupied home listed at $199K. I couldn't believe the deal the $125K home presented.
As the numbers of homes for sale drops, currently at 10% below the number of homes for sale in 2007 and the homes selling rises, about 10-20% above the weekly #'s of 2007, the bottom is near.
What will likely happen -- buyers are waiting for the bottom to come. That timing is near-impossible. Majority numbers of people will believe the bottom is reached so they will jump in, instantaneously driving inventory down and also removing the best deals and best condition homes from the market which will have the impact of raising the average advertised price of the homes that remain.
Time will tell...

$7500 Tax Credit
Some of you may not be aware of this incentive the federal government just introduced. Anyone buying their 1st home between 4/9/2008 and 7/1/2009 home who is below the limits (which vary depending on marital status) can claim up to a $7500 tax refund.
The catch is - this is not a gift, it must be paid back but that payback is interest-free over 15 years so it's still a great deal.