We are in a depreciating market right now. I am sure your agent can show you that there are more houses going on the market right now than what are actually selling. You have to price your home where the market can see value in your particular house compared to similar houses.

I don't know that prices are continuing to fall - they actually seem to be stabilizing somewhat - but they are below what they were in 06 and 07 in most places.

The pricing you decide upon should be based on comparable sales and the absorption rate in your area as well as the length of time you're willing to wait.