What to do?

I just read the most recent NAR article about how home prices have declined for the first time in awhile. I believe the Chief economist for NAR even said that "the air is coming out of the bubble." What does this mean for me?

I understand that maybe the nation's home market in aggregate may be losing some steam, but what does that mean for people here in the Bay Area? Are the Florida, San Diego, and other slow markets skewing the average? It still seems to be that the market is still somewhat competitive. However, I do notice a slowdown, but does this slowdown mean that in 3 months sellers are going to slash their home prices by 20%? Or does it mean that instead of 5 bids, a seller might just get 1 bid at asking price? It is really hard to say. After reading a few real estate news articles, part of me says that I should wait it out to see what happens. But even if I do wait things out, what is the most realistic thing that I can expect to happen? Prices just flatten? I seriously doubt that prices would drop 50% (that would be a bad thing for since I still have to sell my home too).

Each house is different, each seller is different. Having looked at a ton of houses over the past year, it is becoming more clear to me which homes are overpriced and which ones are bargains. Whenever I see what I think is a bargain, I monitor the house and when it sells. So far, my "picks" have been snapped up off the market.

I suppose that if my wife and I see a home that we really like in our price range, which I perceive to be a bargain, then we should just go for it. Obviously, I don't' want us to be stretched too thin as to end up as a point of discussion on Another F*cked Borrower.