Well, we had our house valued recently, and although nothing has changed within the house since three years ago, it's value had gone down significantly, and the estate agent said that because house prices were so low at the moment, if we could afford to buy without a mortage, then we should go for it now, but we definately shouldn't sell.House prices are not extremely low at the moment. Due to the credit issues they are not rising with inflation - this means money may be lost in the long term and it's harder to make money on a previous investment, but it does not mean houses have suddenly become significantly cheaper. It's still much cheaper to buy a house in North America that in the UK, given similar sizes.
In fact, since banks are not willing to lend money when they aren't sure they will get it back, it's much harder to buy a house now than a few months previously. This is where the credit issues hit - people buying beyond their means.
Which is kind of pointless.
/stuff bordering on spam.