Ok, I've been getting some ad money (controversy!), and this just happened down the road, so I have to blab!
House down at the corner was selling to allow relatives to cash out, since the old people had died. Not a great location at a busy intersection. They went through 2 real estate agents already, and this third one put on a big splash with signs everywhere and lots of open houses. The sellers set a boom price of 650K and were holding firm. The only buyers were hard-nosed 'buy to rent' people, and they offered 500K. The prices held firm!
Now, the agent has fled, and all that is left are the wind-blown hinges of the last 'For Sale' sign, and a few tattered 'Open House' signs.
So, that's what I have to say to all those rosy real estate news stories, that the prices are holding up.