Yes, you are right. Prices are down from two years ago. From the high end to the entry level condo, buyers expect a deal and can usually get it. Banks are only going to loan on the latest comparable, so if short sales and reo's drive the market down, that is where the prices are going. Right now, with the interest rates as low as they are, it is a great time to buy. It is cheaper than renting! Buy now!