I think you should disregard the fire as a whole. The secular trend we are in will be filled with micro-rallies as well as chunks downward. These cyclical events are seasonal but will also be caused by external events. The fires is but one example.
I believe you need to be settled within yourself that all of the these issues aside, we are in a secular depreciation cycle. Yes there may be a rally along the way but it will not affect the overall plan of where we end up come 2011 or 2012.
Regardless of whether you personally rent or buy, it is very likely that the market will be depreciated in most if not all the neighborhoods you are searching in at the moment. Even those affected by the fire. You may be able to strike a bit better deal now because of the fire, but it is unlikely that this deal would be any better then at the same time a year or two from now, you know what I mean?
Just remember real estate moves slow and acts of the government and lenders to bail out the situation may be a little helpful but in time will only extend the cycle while perhaps reducing the slope.
