Slow negotiation on REO?

I was impressed today by a bank owned property priced at $399,000. Not too bad. I think as soon as incomes and home prices get in line nationwide, the prices will stabilize and inventory will go down. Realtor association is thinking this fall. Newsmedia seems to think end of year. Might need to be an administration change. Hopefully we will not have the crazy increases of the last 10 years. Prices here have gone up 300% in 10 years. A lot of happy faces on both sides of the equation. Most properties walking distance to water are still going up and rentals this year in those areas are up. There is serious negotiation on bank owned properties but not the 25% to 30% reductions off mortgage amount we saw Oct to March. Might happen again end of this year. For the last six months I have been saying just make an offer on a bank owned property. Now they seem to want to wait it out. I still have trouble imagining a bank board OKing a bank holding real estate.