Personally I think right now is the perfect time to buy, so long as you're in a position to do so.
Absolutely nothing is selling and I mean nothing. Me and my old man are builders and we currently have 3 properties that we can't sell so are letting out.
We're also half way through building a small developement of 4 detatched bungalows. These are 3 bed bungalows with a garage which in that area are valued at around £165k. We've just sold one for £120k and we were lucky to get that!
As for buying abroad there's some unreal bargains to be had in Florida. We paid $400k for a fully furnished 6 bed luxury villa with own pool in a gated community in 2004. We sold this a few months back for just $265k.
A friend of mine also has a 4 bed villa on a huge complex with every facility imaginable. Golf course, pool, club house, sports bar, free shuttle to parks etc. His is up for sale at $130k - that's like £70k sterling!!!
IMO if you have the means you should be taking advantage of the current housing market. As soon as it starts to pick back up everyone will panic buy and the prices will rocket again....