The number of forclosures in the lower-middle income area you are looking will be more than other higher income areas around metro west. The increase in the forclosure number will drag the prices down of all the other homes in the area, and this trend will continue for the next 1-2 years. If you buy a home in a more upscale neighborhood, the prices are less effected by forclosure, because there are less forclosures in these areas.
If you're looking at a single family home, the outlook isn't bad. The number of homes on the market has stayed steady for the past 3 years. Days on market so far this year is less than the same time period last year; prices are still down, though not as much as between 2006 and 2007. Would not be surprised to see 2008 as the bottom of the single family market.
Multi-family homes in Marlborough have taken a hard hit. Not only are prices down but number of sales are way down. The number of mutlifamily homes on the market has increased year by year.