I guess Wayne can be excused for not buying another house as he put the money in something worthwhile and more than a home, Car (I presume). THis market does seem due for a correction, but houses don't just go in the dumps, they just don't appreciate. Some opportunities will present themselves in forclosures. Thats the index to watch.
http://hud1.towerauction.net/NY.htm check your city or zip. or
http://hud2.towerauction.net/CA.htm No forclosures, then things are good and right now the list is very short, meaning things are good.