I look at this chart, and it makes me want to heave, as we were first time home owners in 2004. I blame grad school. If we hadn't wasted all that time getting a worthless degree, we could have had real jobs and bought earlier. Maybe if we sell now and rent for a year, we can stem the hemorrhage of cash.
On the other hand, if you look at this dip in relation to the dip that occurred during the Great Depression, perhaps we can expect the prices to go back up, when the economy improves.