Shadow Housing Inventory
Calculated Risk has a piece that features a couple home owners that feel that housing prices are down and if they wait their homes will recover in prices.
I like the expression "Shadow Housing Inventory." What happens is eventually these kind of people end up selling and they keep the supply coming that holds the price down.
I have been a great promoter of if you can see a top in the housing market wait 4-7 years to buy. You might not find an absolute bottom, but prices are likely to be reasonable.
Japan had something like 18 years of price declines, but if you look at their prices even 4 to 7 years after the peak trying to buy was hardly affordable.
I have a friend with a place in Florida and the prices there now are sounding no too bad to me, at least where she was quoting them. Florida peaked first and started falling first.
What was also interesting to me is I did a search on Florida housing bubble blogs and they've all become quiet, as if there really isn't much to write about anymore.