It's a buyers market out there, and at least some are buying.
I searched the Northern Illinois Multiple Listing Service for all the closed sales in the month of January 2008, also how many new listings went on the market so far in 2008.
For the entire Chicagoland area, the MLS shows exactly 2331 closed sales of detached single family homes and 1565 closed sales of attached homes and condominiums.
There were 1997 new listings of detached homes and 1300 new listings of townhouses & condo's.
So for January there were more buyers than sellers - Good News!