I think it depends on where you are. Much of the country saw prices fall well below that $8k tax credit. We were looking at houses over that period of time and got a hard sell from the real estate agent, but I knew better and we definitely came out ahead. And here in Upstate SC, real estate saw much less of a fall off than many other areas.
The owners of our house didn’t want to go any lower either, but they also wanted to sell their house, so they had to eventually. Thankfully, there was a foreclosure in the neighborhood that we were able to use to make our case for a lower price.
God was on our side, because that foreclosure dropped their price by another $20k on the morning we were negotiating, which got them to immediately accept our offer.
I’m in a timerland area and generally average land goes for +/- $2500 per for raw land and replacement on the house would be about $150 per sq ft.
We are in the East Texas piney woods.