A young couple asked me when the best time to buy a house is.  They wanted to know if they should wait until the market bottomed out.  Good question.  Since they were first time buyers, here's what I told them.  It's an excellent time to buy. Home prices in good areas under $200,000 are not decreasing.  They're not increasing very fast but they're certainly not decreasing.  Depending on your situation, here's how I would have answered you had you ask.
 
BUYERS
First time buyers: Buy now. Owning is still better than renting and you won't hear your neighbor yell at the kids.  
Investors: Are you kidding. This is the best rental market I've seen.  Good areas only, though.
Incoming Transferees: Get a good Realtor, buy in an appreciating area, and buy a median priced house. Forget the status house if you don't want to leave some of your money behind when you leave.
 
SELLERS
Downsizers: Under $250k sell now.  $250 - $350K you're not going to be happy. Over $350K wait if you can. That market may come back in a couple years. The higher priced homes are taking it on the chin right now.
Cashing outers: If you're retiring you may not have the luxury of waiting.
Financial Strugglers: Deal with the problems now. If you're sinking, don't wait until you're under water to start bailing.
Investors: You may want to sell and take your capital gain while it's still taxed at 15%.  Both presidential candidates will probably change that... my guess is it won't be to your benefit.
Outgoing Transferees: Look hard and long at relocating if you are not forced to in order to keep your job. Only 7 real estate markets in U.S. are doing better than central Ohio!  (Mostly low tax states... imagine that!)  
  
Remember the market is neither good nor bad.  It just is.  It's your perspective that makes it good or bad.