[hytem]

Well, that's California. But California isn't representative of the country. For example, in PA real estate prices haven't bubbled. They have been increasing 3-6% per year, pretty much constant. Lately, about 3%. The market has been hurt some by the media overplaying the real estate situation in the country.
Too many buyers are waiting for the market to bottom more. But interest rates aren't going to stay this low forever. For sure.

As I've said, it's bad in Florida and other resort property areas because there was a bubble due to overspeculation and greed. And a lot of overbuilding in Beach areas. Market prices have corrected substantially in Florida, but it will take awhile longer because the inventories are huge. Miami Beach is very attractive to Europeans right now because of low prices and cheap dollar. The media's false prediction of hurricanes the past two years in Florida has tripled homeowner's insurance there, and the residents aren't too happy about it. Condo fees have gone up 30% because of it.