The New York Times picked up an AP story today that contends that over the next year we will continue to 
see a drop in home prices of between 2%and 8%. The story says that this will be seen even in the markets that have come through the recession without too much of a negative adjustment.
Working in a market that has seen home prices go down, but has not been hit nearly as badly as many areas in the country, I wonder how much of this being driven by the press and how much is being driven by a lack of consumer confidence. I work in the Northern Virginia area which is a suburb of Washington D.C. People are still buying homes, but not at the pace you would expect in a market that has 'recovered.'
That said, a well-prepared, well-priced home will sell in a reasonable amount of time--but the definition of 'reasonable' is being re-written daily.
It sounds like we are in for more time on the roller coaster that is the real estate industry!
For the full text of the story: Don't Hold Your Breath for A Bounce In Home Prices
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Holly, I just read a post by a guy in California about price nose dives, and it was hard to relate. DC prices are actually a bit on the rise. And the suburbs seem to be inching up as well.
Patricia, I agree, prices are definitely up from our low point. I have seen the numbers on D.C. and believe a lot of this is due to our strong job market--ie. the consumer confidence part of the equation.
Since all Real Estate is local, I have to wonder what area this writer was referring to. We've actually seen a stabilization of prices here, and, in some sectors, prices have risen.