The market was following physics and going down into a hole when suddenly it went like toilet paper. Stories told to us now have 5 offers per house, and if you don't top the asking price by $100 K you aren't getting it.
The listings are still thin, but I expect everybody will dust off the signs and go for it. One guy decided to leave the market by selling his house, but has no place to stay that isn't super-expensive.
As I said in 2007 -- this can't go on. :)