The information out there in the media and in the stats is massive, and there are many factors and nuances to consider. In the end the only thing that matters is what you do with it. The real estate market is not really predictable, so I always come back to the balance of probabilities.
There are three options of what will happen in the next year:
1. Prices will go up. In this case we'd be making a mistake not to buy now when rates are low, the market favours buyers strongly, and selection is large. But even the strongest bulls will admit that the chances of this are slim to none. Nothing is impossible, but when even the extremely pro-real estate voices are forecasting a small slide in prices, the chances of increases are essentially zero and we can dismiss this possibility.
2. Prices will remain roughly flat. I think this is the best possible case for real estate right now, and every month that the market conditions deteriorate the probability of this scenario decreases. However if it happens then whether it was correct to rent or buy depends on your rental and what you want to buy. Luckily Roger has developed the excellent Rent VS Buy Calculator so you can figure out the balance for your own situation. For us it works out to be a toss up. If prices stay flat we lose nothing by waiting.
3. Prices decline. In this case it's almost impossible not to come out ahead by waiting. We can debate the magnitude until the end of time, but it hardly matters because any decline is money saved, and when you're thinking of spending north of half a million dollars, even a few percent is big.
Right now I'm thinking the probability of option 1 is 0-1%, and option 2 less than 15%. The conclusion for renters seems obvious.