Here is a public service announcement for those of you who might be younger or who did not live through past housing bubbles (such as the mid-80's bubble in Texas). Housing bubbles take a long time to sort out. The typical pattern is that one sees a big build-up of yard "For Sale" signs around town, but no real movement or sales. What happens is that people selling their houses resist accepting that a change in pricing levels has occurred, and list the homes at the old, higher price levels, particularly when any price cuts would put them underwater on their mortgage.
Eventually, the dam breaks, as sellers are forced to accept lower pricing because they can no longer bear the holding costs any longer. In Texas, I had at least two friends who just left the keys in the mailbox and walked away, leaving it all to the bank to sort out. But it can take a really long time for this to play out -- I am talking years, not months, depending on how inflated the bubble got. From my experience (confirmed in the futures markets here) the bottom will not come until at least a year from now. In Texas in the 1980's, it took as long as five years for the whole thing to play out and for prices to start recovering.