The realtors I talked to recently all said that until prices come down drastically, people around here, at least, are just not going to buy. And they are not buying.
I noted on another thread a few days ago what my realtor friend in HI said. I'll have to ask him what it's like on hte other islands. On the Big Island, prices are down 20% and more. Tons of inventory.
If prices are falling, why buy today? You may save by waiting till tomorrow.