Shocking: a buyer's market is good for buyers!
Surprise, they aren't. The USA Todaysums it up well: "... what's bad for sellers is good for buyers - at least those blessed with excellent credit and enough money for a sizable down payment. They can enjoy lots of homes to choose among, time to browse, and typically, the advantage in negotiations."
Translation: the housing bubble has as many winners as losers, given that for every house that's sold, another house is bought.
All of this raises a question: What exactly is the point of using taxpayer money to tip the scales in favor of one group of people in a zero-sum game. And then there's the moral hazard argument: people who have excellent credit and enough saved for a sizable down payment are being forced to pay higher prices because home prices are being artificially propped up.