Hi Diane,
Your question popped up in Bainbridge Island, WA, near Seattle, so I'll provide the local statistics from the Northwest MLS:

Bainbridge Island, area 170:
Dec. 2006, average closed price: $752,154
Dec. 2007, average closed price: $820,569

For Kitsap County:
Dec. 2006, average closed price: $343,847
Dec. 2007, average closed price: $307,345

As you can see, not all areas have gone down in price. Real estate prices are very localized and the trends can vary greatly from one area to another.

National Median Home
4th Quarter 05 - $225,300
1st Quarter 06 - $217,900 (-3.3%)

http://money.cnn.com/2006/05/15/real_estate/NAR_firstQ2005_h…

April 06 - $254,530
April 07 - $229,100

http://money.cnn.com/2007/05/24/news/economy/new_home_sales/…

Billings Montana
4th quarter 2005: $140,258
4th quarter 2006: $138,572

http://www.bankrate.com/bosre/news/real-estate/reminiguide07…

Hope this helps

Diane, Your local Realor/Licensee can pull up the MLS data fairly easily for that area. But you can also check with other reporting agencies. Check with the Office of Federal Housing Enterprise Oversight or OFHEO.org This government organization uses appraisal information and has most cities represented plus great studies on "Boom vs. Bust" markets.