To update my previous answer, most everyone agrees that all markets are local and we can all say with certainty what has happened to prices but not what will happen in the future. By way of example, the residential market in our community, Arroyo Grande, showed a continuing decline during the past two years. Median sold price in April, 2010 was $477,500. In April, 2012 it was $328,755, a decline of 31%.
Is this indicative of what the future holds in store? Possible not. During the same two-year period the supply of homes for sale was reduced 45% yet the demand for those home was down just 4%. As you may know from Economics 101, when supply can't keep up with demand, prices begin to rise.
All of that said, it is still true that nobody can predict the future. All we can do is look at the indicators and make informed guesses.