IMO, home prices will fall back to 1998-9 levels.
But there are places where the purchase-vs-rent ratio already supports an argument for buying. Not where I live, unfortunately, but since I don't want to stay in Virginia for another seven years, I don't think I'd be buying even if the prices here were "reasonable."
Gotta get outa this place . . .

Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months