You've asked, he's answered!
1. Lower supplies
Real estate isn't rocket science. If you have too much inventory without an increase in demand prices will fall. That has been the case the last 3 years. In order for a bottom to occur we need lower supplies. After the bottom has hit supply and demand graphs will resemble the markets prior to 2003.
2. People stop talking about real estate
Foreclosures, the housing bubble and collapse won't be the topic of so many conversations. You won't go into the gym or a restaurant and overhear real estate horror stories.
3. Real estate isn't as newsworthy
You will be able to listen to the nightly news or read a newspaper without seeing or hearing "foreclosure."
You will see more people smiling because they are more optimistic about their future.
5. Investors will be looking to buy real estate again
Real estate prices will be low enough to attract long term investors back into the market. The numbers will make sense again. Rental income in relation to prices will become more attractive. In Sarasota, Florida I am getting more calls from investors.
6. Lending guidelines will have loosened a bit
Most people need to borrow money to buy homes. If we can't borrow we can't buy. I have heard stories recently about people with 700+ credit scores and plenty of assets who are having trouble getting financing. That won't be the case forever.
7. The bulk of foreclosures have already hit the market
Foreclosures won't end. We had them before the boom and we will always have them. The problem we have now is a foreclosure snowball. It needs to stop before the bottom will set in. The market will either do it for us through lower prices or the government will get their bailout plan right and get it stopped.
8. Greed will come back
More people will have the hope and optimism that real estate prices will increase and that they can actually make money on real estate again. Greed will resurface and you will see more people taking risks. People won't forget about the real estate bust so the greed won't get out of hand.
You probably won't see such wild swings in the stock market. Things will be a bit more stable.
Everyone will be a little bit wiser because of this real estate bust. It will be a long time before people forget (or ignore) what happened. Perhaps it will take a generation. We will all come out of this a little more cautious.