Of course not! There are so many good deals out there right now there it makes no sense to discontinue your home search. Just in Essex County there are 400 single family homes priced under $250,000. Three years ago you would be hard pressed to find 25 homes in that price range. If you are looking for a condo there are 285 priced under $150,000 in Essex County.
Don't overlook short sale properties now that you don't have the tax rebate deadline looming over you anymore. You can get some fantastic deals on all types of properties. Don't let the asking price stop you from placing an offer significantly lower. When making an offer, you do have to consider what the property is really worth in today's market, and how long it has been on the market. A newly listed short sale property with aggressive (low) pricing could get offers for more than the list price. Your buyer agent is the best person to help you determine an offer price.
You do have to be a little patient when waiting for a response to your offer, but in the end it could be worth it. The good news is that many lenders are working on cutting the response time down for replying to short sale offers.