The National Association of Realtors® reports that "Most metropolitan area median home prices, impacted by distressed sales, trended down in the fourth quarter from a year earlier. At the same time, existing-home sales rose in only six states from the fourth quarter of 2007."
It's the foreclosures and short sales that make up the "distressed sales". We are noticing very enticing prices on these properties. We are also experiencing multiple offers, and sale prices above the list price on such properties.
Metropolitan areas that suffered the steepest home price declines (on single family homes) were "Las Vegas-Paradise, seven metro areas in California, Phoenix-Mesa-Scottsdale, and three metros in Florida".
On the other end of the scale, metropolitan areas that had the largest home price increase (on single family homes) were Beaumont-Port Arthur (Texas), Bloomington-Normal (Illinois) and Dover (Delaware).
To read more: 4th quarter 2008 home price report