House prices are fore-casted to fall a further 18.5% - 27% from their previous 28% decline, to reach the long term trend line set before the real estate bubble was blown.
As in past severe price deflation's, it is logical to assume that prices will plummet below the long term trend line. The amount of overshoot is anyone's guess, but 10% would be conservative. This leaves home prices to decline 28.5% to 37%, into 2010, before a bottom in real estate is realized.
Buy now? Would not be a prudent financial choice. In this case patience is definitely a virtue.
Disclosure: No position.