House prices in Duck and Southern Shores have not come down much and still have much more room for correction to the once assumed 10%/year appreciation of value to the pre-bubble prices. This is most likely due to the lack of homes/lots for sale in these areas as well as the lack of foreclosed properties here. Your best bet for a bargain investment is most likely in Kill Devil Hills. There are tons of homes available and the prices there have dropped significantly to their pre-bubble prices and even lower. With this recession looking more like an "L" shaped depression than a "U" shaped recession home prices will most likely continute to plummet and there will be great deals in the next year or so. Continue to watch the stock market b/c, historically, that normally rebounds before the housing market. In either case, 2005 & 2006 prices will probably not be seen for at least another 5 years.