My expectations are also high for our area. It's hard to believe that the average seling price has gone up over the last year. With the lower interest rates still available, I think you're right that there are a lot of good opportunites for buyers AND sellers. When they sell, they also are usually buying. If they're ready to make a change, the fact that they may be selling lower than expected is the same reason they will be able to buy lower for the same reason. When the prices go up again, it also affects both equally.
It also seems to me that the investors are coming out which tends to tell me that they are not sitting on the sidelines any more and are expecting the same. It would be great to hear from some of them as well.
How about some owners & sellers? What do you think?