According to a recent Trulia report, overall home inventory is high and sellers continue to reduce prices with the hope of attracting buyers. It is clear that buyers are in the "driver's seat" in any negotiations with sellers. The big question is how long will this trend continue. The first-time buyer tax credit has ended and that played a big role in pushing up the spring sales increases. I think there is a natural fall-off in activity when gimmicks like the tax credit end because it just encouraged people who were going to buy this summer to move their schedule up. Let's wait and see what August and September bring.
Meanwhile, rates are low and there are numerous programs available for all levels of buyers.