Each house market would act differently, some with a depressed recovery, some a whipsaw recovery. Watch your own market as the rule applies "last to go up, first to go down". Coastal markets will drop enough, interior less. Here is a good Case Shiller analysis of prices over time for markets.
Buy when it gets near last periods low prices (do own analysis, don't rely on my flippant date mention though...).
I don't follow. Are you saying don't buy until till the drop or, don't buy when it drops?