There is no fat lady scheduled to sing anytime in the near future – at least not when it comes to the rate of foreclosures that continue to pummel the housing market.  The demand for housing remains low, while a large number of foreclosed homes keep entering the market.  With this loop seeming to be unending, the housing market may remain stagnant for many more years to come.  According to MSNBC.com,

Now, foreclosures are sweeping up a broad swath of homeowners. Many of whom have simply fallen victim to the tough economy. About 30 percent of homeowners with mortgages have less than 5 percent equity, including many who are underwater, or owe more than their house is worth. If home prices continue falling, that puts roughly $650 billion worth of outstanding mortgages at risk…

If you can stay put, do it.  If you have to sell, you may be in for a long, unpleasant ride.  If you are buying, there should definitely be a deal out there for you!