Not yet in Albuquerque. Foreclosures are still rising and you can now get a nicer house in California for $250k than you can here - we have a ways to drop yet. Maybe not as severe as some of those other southwestern markets and it won't drop overnight, but I think we have another 5-10% to go on the west side and another 3-6% on the east side. of town We could also experience a double dip, if inflation kicks in the way I expect it to (and so do many others): http://budurl.com/cfmg
However, I do sincerely believe 2009 is the year to remember as the best opportunity to "move up". If anyone out there is even thinking of moving up in the next few years, do it now! II am buying more myself and telling all my friends and family to refi, move up, or buy that investment or rental now - this is the perfect storm of circumstances to make this the opportunity of a lifetime to buy, just before the perfect storm to make it a bad time (once inflation returns along with pent up demand - household formation has not been put on hold, while building has come to a screeching halt.) I do not know the exact timing, nor does anyone, but don't try to time it perfectly - I am happy to expoound much more anytime, just let me know. Great question for us all to address Mike, what is your professional opinion on this one?