This graph shows the reduction of new construction inventory on the Eastside. As you can see the trend is leveling off at about eights months of inventory based on pending sales. Just about every trend is showing a leveling off over the last three months.
Even the Case Shiller index has leveled off over the last three months. This takes us back to prices around June of 2005: (Index over last 12 months)
There was a dramatic increase in the prices of homes sold vs the for sale price. This probably reflects the increase sales in higher price ranges finally selling.
All these trends point to the fact the market has corrected itself. Baring any major incident, it is safe to jump into the market without the fear of loosing value like you would when you buy a new car.
Every buyer I work with today wants a deal. I think the entire market is a deal. We still see that most of the inventory is created by people who need to sell. The foreclosures, short sales, and relocations are setting the price bar very low.