Believe it or not, home prices are still going up in the Seattle area. My county's avg home value went up $10,000 last month, to about $440,000. Homes aren't selling as quickly, especially the really expensive ones, but the values haven't really gone down here yet. Mostly it's plateaued...people are waiting for some sellers to GET REAL and are therefore holding off on buying a place. Eventually sellers are going to have to lower their asking prices to keep up with the competition - there are a gazillion homes for sale here right now, but it's not due to foreclosure; they're selling right now because they know this is the best shot they have at getting the maximum for their houses. In the meantime, potential homebuyers sit in the wings, waiting, waiting, waiting for them to get the clue. It's a game of chicken.
Here's an article on what we're seeing up here in the PacNW:
http://seattletimes.nwsource.com/htm...yndication=rss