Bane,
Assuming that you have great taste and have been following your segment of the market carefully, you will find this happening everytime you find a house you want to buy. Although there are lots of homes for sale only a precious few will have an attractive price for product. You may find homes priced very well but will need some work. Then there are those that are prefect but over priced. It’s when you combine both when you’ve truely found a nice house for the price. This happens in the lower, middle, upper end of the market. My only advice would be to have patience and your pricepoint for the product that you want will eventually come together. For now what you want for 450K is too good of a buy, but eventually it will be an everyday occurance. The bad part about that is you will probably want more for 450K at that point. Almost every home that I have looked at and liked for the price has either sold at/or above listing or has gone pending.
I too think the market has further to correct, but I believe the areas that have fallen the most will have less to correct. I don’t think that those areas will stop falling earlier, but just will correct less percentage wise from this point on.
