The entire area has been hit hard, homes in the "Pointes" and Birmingham included. The started higher, so they remain priced higher now, but still down about the same percentages. The market is showing signs of life, but that is in the low end foreclosed homes that are actually getting multiple offers. The prices in all areas may still decline, but are showing signs of leveling out. The best choice for you is to look at where you want to live based on your work, family and expected years of ownership. Call and interview different realtors to see who is a match for you. It requires team work to find the right home, your realtor must be able to listen to you, not show you what they want.

Selling Real Estate now for 33 years (since I was 23) I have seen market trends go up and down for both the areas. My home office is Grosse Pointe Woods (live in GP Shores) and the market has not hit bottom. Since we have 11 offices in SE Michigan and myself with over 3200 transactions I can safely say Royal Oak is steady. Mainly because of the younger crowd. Fifty 50% of my sales is S Oakland County and its my opinion that West Bloomfield is no where close to the bottom. This is all relevant when it comes to specific styles as well as price ranges that you might be in. Please interview agents for the best answers and ask them how much they have sold this year and because of their numbers you should be able to get an idea who is the best to represent you. If I was younger (and no kids) I would live in Royal Oak. Now I got kids, parks, water & schools are my biggest priority. You choose.
Ed

I have not seen hard data specific community value projections looking ahead 1-5 years. Sales histories are available for each community without comments on future trends. I have seen clients use two criteria when choosing between the Grosse Pointes and Royal Oak given that the character/architecture of the communities is somewhat similar: if you like water and boating, go for the Grosse Pointes; if you like a lively downtown dining/entertainment/shopping area and easy access to all freeways consider Royal Oak. My real estate knowledge is Royal Oak area specific. I can talk in depth about real estate trends here while peeking into my crystal ball. My company has an office in Grosse Pointe, I can refer you to someone in that office who can do likewise....let me know if you need a contact name.