I can't say if we have hit bottom yet, but I can tell you that at the bottom it is a feeding frenzy. MOST listings are going for asking or over. I just had a client call me Thursday who wanted to put an offer on a house that was listed for 390k, that was still active on the MLS. I called the agent to find out if (and how many) offers there were. There were 19 offers and it was already up to 470k. That has been the case for the last 9 offers we have made on homes (and din't get. I have heard other agents say they are putting "escalater clauses" in all of their offers. Of course, as I said, this is at the low end and almost exclusively short sales.
So, it would appear that biz has picked up. It seems all of the investors who got burned in the stock market are now buying up the cheapies.
Hope this helps!
The best way to judge whether a market has bottomed it to track the ratio between Active and Pending listings. When this ration begins to get tighter for several consecutive weeks you have seen the turning point of the market. Prices will probably not bottom out for a few more months but this indicator is an early warning for smart buyers to get serious.
In markets such a Vegas this indicator needs to be used carefully as it can easilly be distorted by the number of Pending Sales which are actually Short Sales which in all too many cases do not close. I like to factor in the number of active Short Sales when doing my week-to-week tracking.