Seller's still want all they can get. Values have dropped and some sellers are having a hard time accepting this. On the other hand, many buyers are missing out on good homes by assuming that sellers will accept anything offered. My advice is to find a home you like in a price range you can afford and with the help of a good agent make an offer. You will get it accepted, rejected or countered depending on many factors.
List price is just a place to start. Some listings are overpriced, but others that are well priced do sell quickly. Best of luck.