Prices are continuing to drop, as supply is outrunning demand. Simple economics--short supply, higher price, big supply, lower price. What is difficult is knowing when the market will turn, due to the changes in financing by the banks, which realtors and consumers do not control--basically the Feds control availability of money. However, here in Florida, at least in the Panhandle, property values are holding steady in what would be normal circumstances. We are coming off,however, runaway prices fueled by easy money and 100 % financing. Things are returning to "normal"--which everyone knew had to happen. Work with an agent that can give you information that backs up their claims as to what an appropriate price would be, based on a good comparative analysis.