Pun intended, but the market is rebounding in housing starts. Interest rates are rising, and housing prices are stabilizing rather than dropping. Assessments might still come down a bit if there are more foreclosures in 2011. But, growth in the market at todays rate could absorb some foreclosures, it just remains to be seen how regulations will affect things.
At any rate, there's those puns again, the bottom was last year. It's only going to get MORE expensive to buy housing. THIS is an excellent time to buy, become a landlord, or investor. You can buy for 100-200K, rent it out for two years, and sell it when the market has recovered. Or you can get good location homes that need a fix, and turn over a quick profit, because location is always the selling point.
No matter what you want to do, if you wait until 2020 you'll be looking at a market you can't afford to get into again. There's a slow upward climb coming, and everyone always complains about "not getting in at the start." Well, this is the start! Get in!