^ Well, until fundamentals match the pricing you are looking at more downside risk than historically demanded of a buyer.
On the otherhand there is absolutely no rule that people cannot continue to make poor purchasing decisions, especially in terms of home buying where people need a home regardless of the investment aspects of the purchase. And prices are set not by risk but by the masses - the actual buyers and sellers.
Personally, while it is a crap shoot, i am waiting to buy. In MY opinion the market will NOT go up more than 10% and is more likely to drop or stay stagnant for years. So i figure in ~4% of inflation this year and it seems prudent to give up (10%max-4%inflation) 6% upside to see what happens and potentially see 0% growth or less in the next 2 years - which after inflation is a 5%-10% drop. I am hoping with all these downtown condos coming online next year i can find some desperate speculator willing to cut their price ot get out of their condo.
Claeren.
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