I find it funny 3 real estate agents have said the same thing all agents said all last year and at the end of 2006, yet the market still hasn't even started to recover.
The funny thing about Hampton Roads is the heavy military saturation. Every year real estates agents look forward to military transfer time, which does give a little bump to the market. Slow winter? Just want until the spring when service families start transferring. This gives the 3.4% figure mentioned by one reply a little credibility, but in no way are things getting any better for sellers.
I've lived and grown up in this area. While it is a nice place to live, it's also expensive. Back in the late 80's and early 90's the style of house that had dark wood, carpet throughout, and 3 beds with 2.5 baths was all rage. If you look at most of houses now, the only think the sellers did was add wall paper - when they first bought the house. Nothing updated, nothing renovated....just over sellers expecting to much. Not all houses are like this, but most are.
My advice would be to wait. Rent something - save your down payment because I think there are going to be some big changes over the next year. After another military transfer cycle takes place and the market is still dead, then we'll see some changes. Agents don't like to think about this - lower housing prices mean lower commissions. Remember, they have to think about their pockets also.