Our local MLS has 1462 listings -attached,detached,land,commercial etc. To realistically look at our market and competition a buyer needs to know how many similar homes are for sale. When a buyer has a specific need or desired features in a home and they look for that, they will find far fewer choices. This real estate cycle is far from over but we have seen a very stable market for the last 12-18 months. Homes are selling above the 2004 prices in most instances as long as they have been maintained well. Most of the buyers coming in are realistic and sellers have been averaging 97-98% of their asking prices when they've priced it well. We've seen price drops from the 2006-2007 period for sure, but our averages and medians have been stabilizing.We are seeing multiple offers and competition when the seller prices a home too low against little competition. A four bedroom house with a bonus room, in a nice neighborhood and school system built after 2000 and priced at $400,000 would have no problem selling quickly. But the buyer who comes in and thinks that house should sell for $300,000 because of the housing crisis is dead wrong. There's more to the equation. And Trulia, Zillow and all the other AVMS are a poor source of online value when it comes to comparing. It's simply a math calculation with many elements left out.
If you would like to provide me with specifics of what type of house you may be looking for I'll run a detailed analysis and post it here.