The fact of the matter is that market trends are regional. There are in fact, many areas across the country in which the average sale price of homes has increased.
It was generally understood that once the tax incentive program ended the real estate market would experience a slow down. The fact that interest rates have recently dropped will hopefully rekindle the spark lost with the end of the incentive program.
The interest rate decline may in fact represent better savings for today's buyers than the incentive program and again attract potential buyers.
In may new sales dropped by 33%. Mortgage applications also dropped greatly despite exceptionally low interest rates.
I expect lower prices for some time to come. The future will show if I am correct or not.