I hope, then maybe I can afford a house here.
You're not a student of economics or history, are you?
What happens is those who can still afford their mortgages and rents stay where they are unless they need to move. That causes a drop in available housing inventory.
Drop in inventory equals a lower supply. Lower prices due to the crash equals higher demand. When supply drops and demand increases, prices remain high for those willing and able to afford the homes being listed.
What also happens is equity turns negative. If the market value of a home drops, the owner can't leverage as much, if any, of their equity. Equity loans pay for cars, school tuition, medical expenses, and other high dollar purchases and obligations.
If interest rates drop, many won't be able to refinance to take advantage of lower rates if they don't have enough equity in the home.
Then there are the people who bought homes in the past 5-10 years. if they need to sell due to a change in their lives, they may not be able to afford to sell as their mortgage balance might be higher than the offers -- i.e. upside-down mortgage.
Then there's the constant upkeep and improvements which home refinancing and equity loans make possible. It's rare to hire anyone to do work on your home and spend less than $10,000. A new roof for mine would be over $24K. That's insane.
Even if prices fell as you hope, I doubt you'd be in the market. You don't strike me as someone who can tell when a market is recovering.
As a point in history to look at, try September 2001. Right after the 9/11 attacks, interest rates were cut significantly. This followed about 12 years of housing prices in Hawaii steadily dropping year after year. That's the main reason I kept my house in VA as a rental (tax advantages), and rented here from 1992-2001 What started as an $1,800/mon rental home in Mililani ended up being $1,100 when I moved out -- all to keep us in the house paying rent.
Once interest rates dropped, home prices were bound to increase, so in October, we started house hunting. By the time we closed in Dec, we managed to get a home that had been on the market for $550K for $338K. A couple of months after closing, we refinanced after interest rates were cut again. The tax assessment on the house is now over $1M.
I don't see a housing bubble bursting like what I was able to take advantage of. During Obama's first year, there was a massive housing crisis caused by a huge number of toxic mortgage loans trading on the open market. People lost their homes mostly due to getting into mortgage agreements they couldn't afford. On top of that were the predatory loans that included variable rates and balloon payments. Add to all that the new rules passed by Congress that didn't require lenders to verify employment or income.
So, how is the next bubble going to go? if you haven't taken the time to understand past market crashes, you probably won't know when it's a good time for you to buy.
One other thing -- when prices drop, those owning rental properties with pre-bubble-burst mortgages may not have the equity to refinance for lower payments. So, they will have to either keep rents high to make the mortgage payments, they may have to lower rents to compete with the sellers' market, or they may be forced to sell their rental at potentially a loss. If they lower the asking rent amount, they may be in a cash flow deficit each month.